Item 16. FORM 10-K SUMMARY

None.

​

INDEX TO EXHIBITS

The following designated exhibits, as indicated below, are either filed or furnished, as applicable herewith or have heretofore been filed or furnished with the Securities and Exchange Commission under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.

2.1	Transaction Agreement, dated as of August 14, 2014, by and among Monster Beverage Corporation, New Laser Corporation, New Laser Merger Corp, The Coca-Cola Company and European Refreshments (incorporated by reference to Exhibit 2.1 to our Form 8-K dated August 18, 2014).
2.1.1	Amendment to Transaction Agreement, dated as of March 16, 2018, by and among Monster Beverage Corporation, New Laser Corporation, New Laser Merger Corp., The Coca-Cola Company and European Refreshments (incorporated by reference to Exhibit 2.1 to our Form 8-K dated March 20, 2018).
2.2	Asset Transfer Agreement, dated as of August 14, 2014, by and among Monster Beverage Corporation, New Laser Corporation and The Coca-Cola Company (incorporated by reference to Exhibit 2.2 to our Form 8-K dated August 18, 2014).
3.1	Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to our Form 8-K dated June 27, 2023).
3.2	Fourth Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3.2 to our Form 8-K dated November 7, 2024).
4.1	Description of Common Stock (incorporated by reference to Exhibit 4.1 to our Form 10-K dated February 28, 2020).
10.1	Amended and Restated Distribution Coordination Agreement, dated as of June 12, 2015, between Monster Energy Company and The Coca-Cola Company (incorporated by reference to Exhibit 10.1 to our Form 10-Q dated August 10, 2015).
10.2	Amended and Restated International Distribution Coordination Agreement, dated as of June 12, 2015, between Monster Energy Ltd. and Monster Energy Company and The Coca-Cola Company (incorporated by reference to Exhibit 10.2 to our Form 10-Q dated August 10, 2015).
10.3	Credit Agreement dated as of May 22, 2024 among Monster Beverage Corporation, Monster Energy Company, Monster Energy US LLC, JP Morgan Chase Bank, N.A., as administrative agent and the lenders party thereto (incorporated by reference to Exhibit 10.1 to our Form 8-K dated May 23, 2024).
10.3.1	Amendment No. 1 to the Credit Agreement, dated as of October 17, 2025, among Monster Beverage Corporation, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (incorporated by reference to Exhibit 10.1 to our Form 10-Q dated November 7, 2025).
10.4	Form of Indemnification Agreement (to be provided by Monster Beverage Corporation to its directors and officers) (incorporated by reference to Exhibit 10.1 to our Form 8-K dated June 11, 2019).
10.5+	Employment Agreement between Monster Beverage Corporation and Rodney C. Sacks (incorporated by reference to Exhibit 10.1 to our Form 8-K dated March 19, 2014).
10.6+	Rodney C. Sacks Transition Letter, dated March 10, 2025 (incorporated by reference to Exhibit 10.1 to our Form 8-K dated March 10, 2025).
10.7+	Employment Agreement between Monster Beverage Corporation and Hilton H. Schlosberg (incorporated by reference to Exhibit 10.2 to our Form 8-K dated March 19, 2014).
10.8*+	Amended and Restated Employment Agreement between Monster Energy Company and Emelie Tirre.
10.9*+	Amended and Restated Employment Agreement between Monster Energy Company and Rob Gehring.
10.10+	Monster Beverage Corporation 2011 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to our Form 8-K dated May 24, 2011).
10.11+	Form of Stock Option Agreement for grants under the Monster Beverage Corporation 2011 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.10 to our Form 10-K dated March 1, 2018).
10.12+	Form of Stock Option Agreement of Co-Chief Executive Officers for grants under the Monster Beverage Corporation 2011 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.11 to our Form 10-K dated March 1, 2018).
10.13+	Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.1 to our Form 10-Q dated August 9, 2011).
10.14+	Form of Restricted Stock Unit Agreement for grants under the Monster Beverage Corporation 2011 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.13 to our Form 10-K dated March 1, 2021).
10.15+	Amended and Restated Monster Beverage Corporation Deferred Compensation Plan (incorporated by reference to Exhibit 10.14 to our Form 10-K dated March 1, 2018).

10.16+	Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors (incorporated by reference to Exhibit 4.2 to our Form S-8 dated June 21, 2017).
10.17+	Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022 (incorporated by reference to Exhibit 10.1 to our Form 10-Q dated May 6, 2022).
10.18+	Form of Restricted Stock Unit Agreement pursuant to the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors (incorporated by reference to Exhibit 10.4 to our Form 10-K dated March 1, 2021).
10.19+	Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Appendix A to our Definitive Proxy Statement on Schedule 14A, filed April 21, 2020).
10.20+	Form of Stock Option Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to our Form 10-Q dated May 7, 2021).
10.21+	Form of Annual Incentive Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to our Form 10-Q dated May 7, 2021).
10.22+	Form of Performance Share Unit Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3 to our Form 10-Q dated May 7, 2021).
10.23+	Form of Restricted Stock Unit Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.4 to our Form 10-Q dated May 7, 2021).
10.24+	Form of 2025 Stock Option Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to our Form 10-Q dated May 9, 2025).
10.25+	Form of 2025 Restricted Stock Unit Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3 to our Form 10-Q dated May 9, 2025).
10.26+	Form of 2025 Performance Share Unit Award Agreement for grants under the Monster Beverage Corporation 2020 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.4 to our Form 10-Q dated May 9, 2025).
10.27*+	Monster Beverage Corporation Executive Severance Plan, effective as of February 25, 2025.
19.1	Monster Beverage Corporation Insider Trading Policy, effective as of June 22, 2023 (incorporated by reference to Exhibit 19.1 to our Form 10-K dated February 28, 2025).
21.1*	Subsidiaries
23.1*	Consent of Ernst & Young LLP, independent registered public accounting firm
31.1*	Certification by Chief Executive Officer pursuant to Rule 13A-14(a) or 15D-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification by Chief Financial Officer pursuant to Rule 13A-14(a) or 15D-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*	Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*	Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
97.1+	Monster Beverage Corporation Clawback Policy, effective as of December 1, 2023 (incorporated by reference to Exhibit 97 to our Form 10-K dated February 29, 2024).
101*	The following materials from Monster Beverage Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 are furnished herewith, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2025 and 2024, (ii) Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023, (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023, (iv) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2025, 2024 and 2023, (v) Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023, and (vi) Notes to Consolidated Financial Statements.
104*	The cover page from Monster Beverage Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, formatted in iXBRL (Inline eXtensible Business Reporting Language) and contained in Exhibit 101.

​

*	Filed herewith.

+	Management contract or compensatory plans or arrangements.

​

SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MONSTER BEVERAGE CORPORATION

/s/ HILTON H. SCHLOSBERG	​	Hilton H. Schlosberg	​	Date: February 26, 2026
​	​	Vice Chairman of the Board of	​	​
​	​	Directors and Chief	​	​
​	​	Executive Officer	​	​
​	​	​	​	​
/s/ THOMAS J. KELLY	​	Thomas J. Kelly	​	Date: February 26, 2026
​	​	Chief Financial Officer	​	​

​

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	​ ​ ​	Title	​ ​ ​	Date
​	​	​	​	​
/s/ RODNEY C. SACKS	​	Chairman of the Board of Directors	​	February 26, 2026
Rodney C. Sacks	​	​	​	​
​	​	​	​	​
/s/ HILTON H. SCHLOSBERG	​	Vice Chairman of the Board of Directors	​	February 26, 2026
Hilton H. Schlosberg	​	and Chief Executive Officer (principal	​	​
​	​	executive officer)	​	​
​	​	​	​	​
/s/ THOMAS J. KELLY	​	Chief Financial Officer (principal financial	​	February 26, 2026
Thomas J. Kelly	​	officer, principal accounting officer)	​	​
​	​	​	​	​
/s/ ANA DEMEL	​	Director	​	February 26, 2026
Ana Demel	​	​	​	​
​	​	​	​	​
/s/ JAMES L. DINKINS	​	Director	​	February 26, 2026
James L. Dinkins	​	​	​	​
​	​	​	​	​
/s/ WILLIAM W. DOUGLAS III	​	Director	​	February 26, 2026
William W. Douglas III	​	​	​	​
​	​	​	​	​
/s/ MARK J. HALL	​	Director	​	February 26, 2026
Mark J. Hall	​	​	​	​
​	​	​	​	​
/s/ TIFFANY M. HALL	​	Director	​	February 26, 2026
Tiffany M. Hall	​	​	​	​
​	​	​	​	​
/s/ JEANNE P. JACKSON	​	Director	​	February 26, 2026
Jeanne P. Jackson	​	​	​	​
​	​	​	​	​
/s/ STEVEN G. PIZULA	​	Director	​	February 26, 2026
Steven G. Pizula	​	​	​	​
​	​	​	​	​
/s/ MARK S. VIDERGAUZ	​	Director	​	February 26, 2026
Mark S. Vidergauz	​	​	​	​

​

​

​

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULE

​

​
​	Page
MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES	​
​	​
Report of Independent Registered Public Accounting Firm	70
​	​
Consolidated Balance Sheets as of December 31, 2025 and 2024	72
​	​
Consolidated Statements of Income for the years ended December 31, 2025, 2024 and 2023	73
​	​
Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, 2024 and 2023	74
​	​
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2025, 2024 and 2023	75
​	​
Consolidated Statements of Cash Flows for the years ended December 31, 2025, 2024 and 2023	76
​	​
Notes to Consolidated Financial Statements	78
​	​
Financial Statement Schedule – Valuation and Qualifying Accounts for the years ended December 31, 2025, 2024 and 2023	109

​

​

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of Monster Beverage Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Monster Beverage Corporation and subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 26, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

​

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosure to which it relates.

​	​
​	​	Accrued Promotional Allowances
Description of the Matter	​	The Company recorded $384.1 million in accrued promotional allowances as of December 31, 2025. As described in Notes 1 and 2 of the consolidated financial statements, the Company’s promotional allowances are calculated based on various programs and agreements with its bottlers/distributors and retail customers, and accruals are established at the time of the initial product sale. These accruals are based on agreed-upon terms as well as the Company’s historical experience with similar programs. Promotional allowances for the Company’s energy drink products primarily include consideration given to its non-alcohol bottlers/distributors or retail customers. The promotional expenditures are recorded as a reduction to net sales in the period the underlying sale occurs. Auditing the United States accrued promotional allowances process was challenging due to the amount of data utilized to compute the accrual as a result of the number of bottlers/distributors and retail customers.
How We Addressed the Matter in Our Audit	​	We obtained an understanding, evaluated the design, and tested the operating effectiveness of management’s controls over the United States promotional allowances process. We also tested controls over management’s review of the amount of the recorded promotional allowances and tested management’s controls to validate the completeness and accuracy of data used in management’s estimate. Our substantive audit procedures included, among others, testing the data underlying the United States promotional allowances process and testing the completeness and accuracy of the accrued promotional allowances. We evaluated the completeness of the accrual by selecting accrued promotional allowances recorded, sending confirmation requests to the bottlers/distributors and retail customers and testing a sample of payments made subsequent to year end. We performed analytical procedures considering historical relationships between the promotional allowances recorded to sales. We additionally performed detail testing over the current year promotional expenditures and performed testing over management’s lookback analysis comparing the previous year-end accrued promotional allowances amounts to actual payments. Lastly, we performed inquiries of the Company’s sales and marketing personnel in order to corroborate our understanding of new and existing promotional programs that could impact the amounts recorded.

​

​	​
​	/s/ Ernst & Young LLP
​	​
We have served as the Company’s auditor since 2023.	​
​	​
Irvine, California	​
February 26, 2026	​

​

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2025 AND 2024 (In Thousands, Except Par Value)

​	​	​	​	​	​	​
​	​	December 31,		​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
ASSETS	​	​	​	​	​	​
CURRENT ASSETS:	​	​	​	​	​	​
Cash and cash equivalents	​	$	2,088,117	​	$	1,533,287
Short-term investments	​		677,084			—
Accounts receivable, net	​		1,618,072			1,221,646
Inventories	​		799,623			737,107
Prepaid expenses and other current assets	​		103,551			107,262
Prepaid income taxes	​		74,637			42,202
Total current assets	​		5,361,084			3,641,504
​	​	​	​	​	​	​
INVESTMENTS	​		487,329			—
PROPERTY AND EQUIPMENT, net	​		1,081,544			1,047,024
DEFERRED INCOME TAXES, net	​		188,646			184,260
GOODWILL	​		1,331,643			1,331,643
OTHER INTANGIBLE ASSETS, net	​		1,379,268			1,414,252
OTHER ASSETS	​		159,431			100,406
Total Assets	​	$	9,988,945		$	7,719,089
​	​	​	​	​	​	​
LIABILITIES AND STOCKHOLDERS’ EQUITY	​	​	​	​	​	​
CURRENT LIABILITIES:	​	​	​	​	​	​
Accounts payable	​	$	565,974		$	466,775
Accrued liabilities	​		306,085			220,764
Accrued promotional allowances	​		384,070			267,711
Deferred revenue	​		45,323			45,809
Accrued compensation	​		114,023			92,454
Income taxes payable	​		32,305			4,006
Total current liabilities	​		1,447,780			1,097,519
​	​	​	​	​	​	​
DEFERRED REVENUE	​		159,991			179,008
​	​	​	​	​	​	​
OTHER LIABILITIES	​	​	127,066	​	​	110,893
​	​	​	​	​	​	​
LONG-TERM DEBT	​	​	—	​	​	373,951
​	​	​	​	​	​	​
COMMITMENTS AND CONTINGENCIES (Note 10)	​	​	​	​	​	​
​	​	​	​	​	​	​
STOCKHOLDERS’ EQUITY:	​	​	​	​	​	​
Common stock - $0.005 par value; 5,000,000 shares authorized; 1,132,906 shares issued and 978,113 shares outstanding as of December 31, 2025; 1,126,329 shares issued and 973,079 shares outstanding as of December 31, 2024	​	​	5,665	​	​	5,632
Additional paid-in capital	​		5,430,847			5,144,922
Retained earnings	​		9,354,216			7,448,784
Accumulated other comprehensive loss	​		(60,841)			(269,487)
Common stock in treasury, at cost; 154,793 shares and 153,250 shares as of December 31, 2025 and December 31, 2024, respectively	​		(6,475,779)			(6,372,133)
Total stockholders’ equity	​		8,254,108			5,957,718
Total Liabilities and Stockholders’ Equity	​	$	9,988,945		$	7,719,089

​

See accompanying notes to consolidated financial statements.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

(In Thousands, Except Per Share Amounts)

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
​	​	​	​	​	​	​	​	​	​
NET SALES	​	$	8,294,343	​	$	7,492,709	​	$	7,140,027
​	​	​	​	​	​	​	​	​	​
COST OF SALES	​		3,662,148	​		3,443,831	​		3,345,821
​	​	​	​	​	​	​	​	​	​
GROSS PROFIT	​		4,632,195	​		4,048,878	​		3,794,206
​	​	​	​	​	​	​	​	​	​
OPERATING EXPENSES	​		2,212,841	​		2,118,584	​		1,840,851
​	​	​	​	​	​	​	​	​	​
OPERATING INCOME	​		2,419,354	​		1,930,294	​		1,953,355
​	​	​	​	​	​	​	​	​	​
INTEREST AND OTHER INCOME, NET	​		63,175	​		59,165	​		115,127
​	​	​	​	​	​	​	​	​	​
INCOME BEFORE PROVISION FOR INCOME TAXES	​		2,482,529	​		1,989,459	​		2,068,482
​	​	​	​	​	​	​	​	​	​
PROVISION FOR INCOME TAXES	​	​	577,097	​	​	480,411	​	​	437,494
​	​	​	​	​	​	​	​	​	​
NET INCOME	​	$	1,905,432	​	$	1,509,048	​	$	1,630,988
​	​	​	​	​	​	​	​	​	​
NET INCOME PER COMMON SHARE:	​	​	​	​	​	​	​	​	​
Basic	​	$	1.95	​	$	1.50	​	$	1.56
Diluted	​	$	1.94	​	$	1.49	​	$	1.54
​	​	​	​	​	​	​	​	​	​
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS:	​	​	​	​	​	​	​	​	​
Basic	​		975,887	​		1,004,566	​		1,044,887
Diluted	​		984,451	​		1,013,107	​		1,057,981

​

See accompanying notes to consolidated financial statements.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023 (In Thousands)

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Net income, as reported	​	$	1,905,432	​	$	1,509,048	​	$	1,630,988
Other comprehensive income (loss), net of tax:	​	​	​	​	​	​	​	​	​
Change in foreign currency translation adjustment	​		161,871	​		(140,941)	​		24,241
Change in net unrealized gain (loss) on available-for-sale investments	​	​	1,263	​	​	758	​	​	5,085
Change in net gain (loss) on commodity derivatives	​		45,512	​		(3,967)	​		4,410
Other comprehensive income (loss)	​		208,646	​		(144,150)	​		33,736
Comprehensive income	​	$	2,114,078	​	$	1,364,898	​	$	1,664,724

​

See accompanying notes to consolidated financial statements.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023 (In Thousands)

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	Accumulated		​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	Additional		​	​	​	​	Other		​	​	​	​	​	​	Total
​	​	Common Stock				​	Paid-in		​	Retained		​	Comprehensive		​	Treasury Stock				​	Stockholders’
​	​ ​ ​	Shares	​ ​ ​	Amount		​ ​ ​	Capital		​ ​ ​	Earnings		​ ​ ​	(Loss) Income		​ ​ ​	Shares	​ ​ ​	Amount		​ ​ ​	Equity
Balance, January 1, 2023	​ ​ ​	1,283,688	​	$	6,418	​	$	4,776,804	​	$	9,001,173	​	$	(159,073)	​	(239,088)	​	$	(6,600,281)	​	$	7,025,041
Stock-based compensation		—	​	​	—	​	​	67,664	​	​	—	​	​	—	​	—	​	​	—	​	​	67,664
Stock options/awards		8,904	​	​	45	​	​	130,222	​	​	—	​	​	—	​	—	​	​	—	​	​	130,267
Unrealized gain (loss), net on available-for-sale securities		—	​	​	—	​	​	—	​	​	—	​	​	5,085	​	—	​	​	—	​	​	5,085
Retirement of treasury stock	​	(170,000)	​	​	(850)	​	​	425	​	​	(4,692,425)	​	​	—	​	170,000	​	​	4,692,850	​	​	—
Repurchase of common stock		—	​	​	—	​	​	—	​	​	—	​	​	—	​	(11,933)	​	​	(658,952)	​	​	(658,952)
Foreign currency translation		—	​	​	—	​	​	—	​	​	—	​	​	24,241	​	—	​	​	—	​	​	24,241
Net gain (loss) on commodity derivatives	​	—	​	​	—	​	​	—	​	​	—	​	​	4,410	​	—	​	​	—	​	​	4,410
Net income		—	​	​	—	​	​	—	​	​	1,630,988	​	​	—	​	—	​	​	—	​	​	1,630,988
Balance, December 31, 2023	​	1,122,592		$	5,613		$	4,975,115		$	5,939,736		$	(125,337)	​	(81,021)		$	(2,566,383)		$	8,228,744
Stock-based compensation		—	​	​	—	​	​	90,853	​	​	—	​	​	—	​	—	​	​	—	​	​	90,853
Stock options/awards		3,737	​	​	19	​	​	78,954	​	​	—	​	​	—	​	—	​	​	—	​	​	78,973
Unrealized gain (loss), net on available-for-sale securities		—	​	​	—	​	​	—	​	​	—	​	​	758	​	—	​	​	—	​	​	758
Repurchase of common stock		—	​	​	—	​	​	—	​	​	—	​	​	—	​	(72,229)	​	​	(3,805,750)	​	​	(3,805,750)
Foreign currency translation		—	​	​	—	​	​	—	​	​	—	​	​	(140,941)	​	—	​	​	—	​	​	(140,941)
Net gain (loss) on commodity derivatives	​	—	​	​	—	​	​	—	​	​	—	​	​	(3,967)	​	—	​	​	—	​	​	(3,967)
Net income		—	​	​	—	​	​	—	​	​	1,509,048	​	​	—	​	—	​	​	—	​	​	1,509,048
Balance, December 31, 2024		1,126,329	​	$	5,632	​	$	5,144,922	​	$	7,448,784	​	$	(269,487)	​	(153,250)	​	$	(6,372,133)	​	$	5,957,718
Stock-based compensation	​	—	​	​	—	​	​	121,390	​	​	—	​	​	—	​	—	​	​	—	​	​	121,390
Stock options/awards	​	6,577	​	​	33	​	​	164,535	​	​	—	​	​	—	​	—	​	​	—	​	​	164,568
Unrealized gain (loss), net on available-for-sale securities	​	—	​	​	—	​	​	—	​	​	—	​	​	1,263	​	—	​	​	—	​	​	1,263
Repurchase of common stock	​	—	​	​	—	​	​	—	​	​	—	​	​	—	​	(1,543)	​	​	(103,646)	​	​	(103,646)
Foreign currency translation	​	—	​	​	—	​	​	—	​	​	—	​	​	161,871	​	—	​	​	—	​	​	161,871
Net gain (loss) on commodity derivatives	​	—	​	​	—	​	​	—	​	​	—	​	​	45,512	​	—	​	​	—	​	​	45,512
Net income		—	​	​	—	​	​	—	​	​	1,905,432	​	​	—	​	—	​	​	—	​	​	1,905,432
Balance, December 31, 2025		1,132,906	​	$	5,665	​	$	5,430,847	​	$	9,354,216	​	$	(60,841)	​	(154,793)	​	$	(6,475,779)	​	$	8,254,108

​

See accompanying notes to consolidated financial statements.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023 (In Thousands)

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
CASH FLOWS FROM OPERATING ACTIVITIES:	​	​	​	​	​	​	​	​	​
Net income	​	$	1,905,432	​	$	1,509,048	​	$	1,630,988
Adjustments to reconcile net income to net cash provided by operating activities:	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​		114,441	​		80,434	​		68,898
Non-cash lease expense	​	​	15,398	​	​	13,521	​	​	9,043
Loss on disposal of property and equipment	​		2,781	​	​	3,328	​	​	166
Gain on Bang Transaction	​	​	—	​	​	—	​	​	(45,382)
Impairment of goodwill and other intangibles	​	​	38,411	​	​	127,098	​	​	38,700
Impairment of property and equipment	​	​	12,029	​	​	8,184	​	​	4,336
Stock-based compensation	​		125,687	​		90,985	​		68,836
Deferred income taxes	​		4,210	​	​	(11,705)	​	​	2,040
Effect on cash of changes in operating assets and liabilities net of acquisition:	​	​	​	​	​	​	​	​	​
Accounts receivable	​		(300,600)	​		(93,915)	​		(163,158)
Inventories	​		(34,918)	​		211,503	​		7,898
Prepaid expenses and other assets	​		(39,307)	​		8,959	​		(10,215)
Prepaid income taxes	​		(21,094)	​		3,062	​		(18,833)
Accounts payable	​		78,460	​		(61,491)	​		112,786
Accrued liabilities	​		81,341	​		18,371	​		(10,393)
Accrued promotional allowances	​		98,266	​		9,736	​		8,418
Accrued compensation	​		17,801	​		5,947	​		13,398
Income taxes payable	​		27,779	​		9,438	​		1,748
Other liabilities	​	​	(4,935)	​	​	13,390	​	​	22,951
Deferred revenue	​		(23,005)	​		(17,360)	​		(24,472)
Net cash provided by operating activities	​		2,098,177	​		1,928,533	​		1,717,753
​	​	​	​	​	​	​	​	​	​
CASH FLOWS FROM INVESTING ACTIVITIES:	​	​	​	​	​	​	​	​	​
Sales of available-for-sale investments	​		105,794	​		1,377,915	​		2,029,737
Purchases of available-for-sale investments	​	​	(1,268,944)	​	​	(342,121)	​	​	(1,620,718)
Acquisition of Bang Energy	​	​	—	​	​	—	​	​	(363,385)
Purchases of property and equipment	​		(132,275)	​		(264,074)	​		(221,428)
Proceeds from sale of property and equipment	​		4,299	​		2,732	​		2,520
Additions to intangibles	​		(25,254)	​		(42,360)	​		(13,296)
Decrease (increase) in other assets	​		(398)	​		1,635	​		(6,825)
Net cash (used in) provided by investing activities	​		(1,316,778)	​		733,727	​		(193,395)
​	​	​	​	​	​	​	​	​	​
CASH FLOWS FROM FINANCING ACTIVITIES:	​	​	​	​	​	​	​	​	​
Payments on short-term debt	​		(10,344)	​		(8,223)	​		(13,914)
Borrowings on credit facilities	​	​	—	​	​	750,000	​	​	—
Payments on credit facilities	​	​	(375,000)	​	​	(375,000)	​	​	—
Payments for debt issuance costs	​	​	—	​	​	(2,904)	​	​	—
Issuance of common stock	​		164,568	​		78,973	​		130,267
Purchases of common stock held in treasury	​		(103,646)	​		(3,771,875)	​		(658,952)
Net cash used in financing activities	​		(324,422)	​		(3,329,029)	​		(542,599)
​	​	​	​	​	​	​	​	​	​
Effect of exchange rate changes on cash and cash equivalents	​		97,853	​		(97,619)	​		8,775
​	​	​	​	​	​	​	​	​	​
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	​		554,830	​		(764,388)	​		990,534
CASH AND CASH EQUIVALENTS, beginning of year	​		1,533,287	​		2,297,675	​		1,307,141
CASH AND CASH EQUIVALENTS, end of year	​	$	2,088,117	​	$	1,533,287	​	$	2,297,675
​	​	​	​	​	​	​	​	​	​
SUPPLEMENTAL INFORMATION:	​	​	​	​	​	​	​	​	​
Cash paid during the year for:	​	​	​	​	​	​	​	​	​
Interest	​	$	5,337	​	$	25,270	​	$	363

​

See accompanying notes to consolidated financial statements.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023

​

SUPPLEMENTAL DISCLOSURE OF NON-CASH ITEMS:

​

Included in accrued liabilities as of December 31, 2025, 2024 and 2023 were additions to other intangible assets of $2.3 million, $5.0 million and $15.4 million, respectively.

Included in accounts payable as of December 31, 2025, 2024 and 2023 were property and equipment purchases of $1.8 million, $6.3 million and $16.9 million, respectively.

Included in accounts receivable as of December 31, 2023 were sales of available-for-sale short-term investments of $3.0 million.

See accompanying notes to consolidated financial statements.

​

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

1.ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization – Monster Beverage Corporation (the “Company”) was incorporated in the state of Delaware. The Company is a holding company and has no operating business except through its consolidated subsidiaries.

Nature of Operations – The Company develops, markets, sells and distributes energy drink beverages and concentrates for energy drink beverages, primarily under the following brand names: Monster Energy®, Monster Energy Ultra®, Rehab Monster®, Monster Energy® Nitro, Java Monster®, Punch Monster®, Juice Monster®, Reign Total Body Fuel®, Reign Storm®, Bang Energy®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Live+®, Predator® and Fury®.

The Company also develops, markets, sells and distributes craft beers, flavored malt beverages (“FMBs”) and hard seltzers under a number of brands, including Jai Alai® IPA, Florida Man® IPA, Dale’s Pale Ale®, Wild Basin® Hard Seltzers, Dallas Blonde®, Deep EllumTM IPA, Perrin Brewing Company® Black Ale, Hop Rising® Double IPA, Wasatch® Apricot Hefeweizen, The BeastTM, Beast® Tea, Blind Lemon®, Blinder LemonTM and other brands.

Basis of Presentation – The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company and its consolidated subsidiaries.

Principles of Consolidation – The Company consolidates all entities that it controls by ownership of a majority voting interest. All intercompany balances and transactions have been eliminated in consolidation.

Business Combinations – Business acquisitions are accounted for in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805 “Business Combinations”. FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase. The acquiree’s results are included in the Company’s consolidated financial statements from the date of acquisition. Assets acquired and liabilities assumed are recorded at their fair values and the excess of the purchase price over the amounts assigned is recorded as goodwill. Adjustments to fair value assessments are recorded to goodwill over the measurement period (not longer than twelve months). The acquisition method also requires that acquisition-related transaction and post-acquisition restructuring costs be charged to expense and requires the Company to recognize and measure certain assets and liabilities including those arising from contingencies and contingent consideration in a business combination.

Cash and Cash Equivalents – The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase to be cash equivalents. Throughout the year, the Company has had amounts on deposit at financial institutions that exceed the federally insured limits. The Company has not experienced any loss as a result of these deposits and does not expect to incur any losses in the future.

Investments – The Company’s investments in debt securities are classified as either held-to-maturity, available-for-sale or trading, in accordance with FASB ASC 320. Held-to-maturity securities are those securities that the Company has the positive intent and ability to hold until maturity. Trading securities are those securities that the Company intends to sell in the near term. All other securities not included in the held-to-maturity or trading category are classified as available-for-sale. Held-to-maturity securities are recorded at amortized cost which approximates fair market value. Trading securities are carried at fair value with unrealized gains and losses charged to earnings. Available-for-sale securities are carried at fair value with unrealized gains and losses recorded within accumulated other comprehensive income (loss) as a separate component of stockholders’ equity. FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. Under FASB ASC 326-30-35, a security is considered to be impaired if the fair value of the security is less than its amortized cost basis. Where the decline in fair value below the amortized cost basis has resulted from a credit loss, the Company will record an impairment relating to credit losses through an allowance for credit losses. The allowance is limited by the amount that the

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

fair value is less than the amortized cost basis. Impairment that has not been recorded through an allowance for credit losses is recorded through other comprehensive income (loss), net of applicable taxes. The Company evaluates whether the decline in fair value of its investments has resulted from credit loss or other factors at each quarter-end. This evaluation consists of a review by management and includes market pricing information and maturity dates for the securities held, market and economic trends in the industry and information on the issuer’s financial condition and, if applicable, information on the guarantors’ financial condition. Factors considered in determining whether an impairment has resulted from credit loss or other factors include the length of time and extent to which the investment’s fair value has been less than its cost basis, the financial condition and near-term prospects of the issuer and guarantors, including any specific events which may influence the operations of the issuer and the Company’s intent and ability to retain the investment for a reasonable period of time sufficient to allow for any anticipated recovery of fair value.

Accounts Receivable – The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s recent loss history and an overall assessment of past due trade accounts receivable outstanding. In accordance with FASB ASC 210-20-45, in its consolidated balance sheets, the Company has presented accounts receivable, net of promotional allowances, only for those customers that it allows net settlement. All other accounts receivable and related promotional allowances are shown on a gross basis.

Inventories – Inventories are valued at the lower of first-in, first-out, cost or market value (net realizable value).

Property and Equipment – Property and equipment are stated at cost. Depreciation of furniture and fixtures, office and computer equipment, equipment, real property and vehicles is based on their estimated useful lives (generally five to thirty years) and is calculated using the straight-line method. Amortization of leasehold improvements is based on the lesser of their estimated useful lives or the terms of the related leases and is calculated using the straight-line method. Normal repairs and maintenance costs are expensed as incurred. Expenditures that materially increase values or extend useful lives are capitalized. The related costs and accumulated depreciation of disposed assets are eliminated and any resulting gain or loss on disposition is included in net income.

Goodwill – The Company records goodwill when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired, including related tax effects. Goodwill is not amortized; instead, goodwill is tested for impairment on an annual basis, or more frequently if the Company believes indicators of impairment exist. The Company first assesses qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying value. If the Company reasonably determines that it is more-likely-than-not that the fair value is less than the carrying value, the Company performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The Company will recognize an impairment for the amount by which the carrying amount exceeds a reporting unit’s fair value. For the years ended December 31, 2025 and 2023 there were no goodwill impairments recorded. For the year ended December 31, 2024, goodwill impairment charges of $86.3 million were recorded related to the Alcohol Brands reporting unit with no goodwill balance remaining in the Alcohol Brands reporting unit following the impairment charges. As of December 31, 2025, the accumulated goodwill impairment balance was $86.3 million related entirely to the Alcohol Brands reporting unit.

Other Intangibles – Other Intangibles are comprised primarily of trademarks that represent the Company’s exclusive ownership of the Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Storm®, Predator®, Fury®, NOS®, Full Throttle®, Burn®, Mother®, Nalu®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, BPM®, BU®, Samurai®, Bang Energy®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin®, Dale’s®, Mama’s Little Yella Pils®, Hop Rising®, The BeastTM, The Beast Unleashed®, Beast® Tea, Blind Lemon® and Blinder LemonTM trademarks, all used in connection with the manufacture, sale and distribution of beverages. The Company also owns a number of other trademarks, flavors and formulas in the United States, as well as in a number of countries around the world. In accordance with FASB ASC 350, intangible assets with indefinite lives are not amortized but instead are measured for impairment at least annually, or when events indicate that an impairment exists. The Company calculates impairment as the excess of the carrying value of its indefinite-lived assets over their estimated fair value. If the carrying value exceeds the estimate of fair value

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

a write-down is recorded. The Company amortizes intangible assets with finite useful lives over their respective useful lives. External legal costs incurred in the defense of the Company’s trademarks are capitalized when the future economic benefit of the intangible asset will be increased, and a successful defense is probable. In the event of a successful defense, the settlements received are netted against the external legal costs that were capitalized. The external legal costs incurred and settlements received may not occur in the same period. For the year ended December 31, 2025, no impairment charges were recorded to indefinite-lived intangibles. For the years ended December 31, 2024 and 2023, impairment charges of $40.8 million and $38.7 million, respectively, were recorded to indefinite-lived intangibles.

The Company presently has more than 21,600 registered trademarks and pending applications in various countries worldwide, and the Company applies for new trademarks on an ongoing basis. The Company regards its trademarks, service marks, copyrights, domain names, trade dress and other intellectual property as very important to its business. The Company considers Monster®, Monster Energy®, ®, Monster Energy Ultra®, Unleash the Beast!®, Rehab Monster®, Java Monster®, Punch Monster®, Juice Monster®, Monster Energy® Nitro, Reign Total Body Fuel®, Reign Storm®, BU®, Nalu®, NOS®, Full Throttle®, Burn®, Mother®, Ultra Energy®, Play® and Power Play® (stylized), Relentless®, Predator®, Fury®, Live+®, BPM®, Samurai®, Bang Energy®, Oskar Blues Brewery®, Cigar City®, Deep Ellum Brewing Co®, Perrin Brewing Company®, Squatters®, Wasatch®, Jai Alai®, Dale’s Pale Ale®, Dallas Blonde®, Wild Basin®, Dale’s®, Hop Rising®, The BeastTM, The Beast Unleashed®, Beast® Tea, Blind Lemon® and Blinder LemonTM to be its core trademarks. The Company also owns the intellectual property of its most important flavors for certain of its Monster Energy® Brand energy drinks in perpetuity.

Long-Lived Assets – Management regularly reviews property and equipment and other long-lived assets, including finite-lived intangible assets, for possible impairment. This review occurs annually, or more frequently if events or changes in circumstances indicate the carrying amount of the asset may not be recoverable. If there is indication of impairment, management then prepares an estimate of future cash flows (undiscounted and without interest charges) expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. The fair value is estimated using the present value of the future cash flows discounted at a rate commensurate with management’s estimates of the business risks. Preparation of estimated expected future cash flows is inherently subjective and is based on management’s best estimate of assumptions concerning expected future conditions. For the years ended December 31, 2025, 2024 and 2023, impairment charges of $53.7 million, $8.2 million and $4.3 million, respectively, were recognized on long-lived assets, consisting of property and equipment and finite-lived intangible assets related to the Company’s alcohol products. Long-lived assets held for sale are recorded at the lower of their carrying amount or fair value less cost to sell.

Foreign Currency Translation and Transactions – The accounts of the Company’s foreign subsidiaries are translated in accordance with FASB ASC 830. Foreign currency transaction gains and losses are recognized in other income (expense), net, at the time they occur. Net foreign currency exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries whose functional currency is not the U.S. dollar are recorded as a part of accumulated other comprehensive income (loss) in stockholders’ equity. Unrealized foreign currency exchange gains and losses on certain intercompany transactions that are of a long-term investment nature (i.e., settlement is not planned or anticipated in the foreseeable future) are also recorded in accumulated other comprehensive income (loss) in stockholders’ equity. During the years ended December 31, 2025, 2024 and 2023, the Company entered into forward currency exchange contracts with financial institutions to create an economic hedge to specifically manage a portion of the foreign exchange risk exposure associated with certain consolidated subsidiaries non-functional currency denominated assets and liabilities. All foreign currency exchange contracts outstanding as of December 31, 2025 have terms of three months or less. The Company does not enter into forward currency exchange contracts for speculation or trading purposes.

The Company generally does not designate its foreign currency exchange contracts as hedge transactions under FASB ASC 815. Therefore, gains and losses on the Company’s foreign currency exchange contracts are recognized in interest and other income, net, in the consolidated statements of income, and are largely offset by the changes in the fair value of the underlying economically hedged item. For the years ended December 31, 2025, 2024 and 2023, aggregate foreign currency transaction gains (losses), including the gains or losses on forward currency exchange contracts, amounted to $(11.9) million, $(26.4) million and $(60.2) million, respectively, and have been recorded in interest and other income, net, in the accompanying consolidated statements of income.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Revenue Recognition – See Note 2.

Cost of Sales – Cost of sales consists of the costs of flavors, concentrates, supplement ingredients and/or beverage bases, the costs of raw materials utilized in the manufacture of beverages, co-packing fees, repacking fees, in-bound freight charges, as well as internal transfer costs, warehouse expenses incurred prior to the manufacture of the Company’s finished products and certain quality control costs. In addition, the Company includes in costs of sales certain costs such as depreciation, amortization and payroll costs that relate to the direct manufacture by the Company of certain flavors and concentrates. Raw materials account for the largest portion of cost of sales. Raw materials include cans, bottles, other containers, flavors, ingredients and packaging materials.

Operating Expenses – Operating expenses include selling expenses such as distribution expenses to transport products to customers and warehousing expenses after manufacture, as well as expenses for advertising, sampling and in-store demonstration costs, costs for merchandise displays, point-of-sale materials and premium items, sponsorship expenses, other marketing expenses and design expenses. Operating expenses also include such costs as payroll costs, travel costs, professional service fees including legal fees, termination payments made to certain of the Company’s prior distributors, impairment charges on goodwill and other intangible assets, depreciation and other general and administrative costs.

Freight-Out Costs – For the years ended December 31, 2025, 2024 and 2023, freight-out costs amounted to $237.0 million, $224.2 million and $223.6 million, respectively, and have been recorded in operating expenses in the accompanying consolidated statements of income.

Advertising and Promotional Expenses – The Company accounts for advertising production costs by expensing such production costs the first time the related advertising takes place. A significant amount of the Company’s promotional expenses result from payments under sponsorship and endorsement contracts. Accounting for sponsorship and endorsement payments is based upon specific contract provisions. Generally, sponsorship and endorsement payments are expensed on a straight-line basis over the term of the contract after giving recognition to the periodic performance compliance provisions of the contracts. Advertising and promotional expenses, including, but not limited to, production costs amounted to $599.9 million, $584.1 million and $528.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. Advertising and promotional expenses that are not subject to FASB ASC 606 are included in operating expenses in the accompanying consolidated statements of income.

Income Taxes – The Company utilizes the liability method of accounting for income taxes as set forth in FASB ASC 740. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. In determining the need for valuation allowances the Company considers projected future taxable income and the availability of tax planning strategies. If in the future the Company determines that it would not be able to realize its recorded deferred tax assets, an increase in the valuation allowance would be recorded, decreasing earnings in the period in which such determination is made.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon the Company’s evaluation of the facts, circumstances and information available at the reporting date. For those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, the Company has recorded the largest amount of tax benefit that may potentially be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Stock-Based Compensation – The Company accounts for stock-based compensation under the provisions of FASB ASC 718. The Company records compensation expense for employee stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing formula. The Company records compensation expense for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, using the Black-Scholes-Merton option pricing formula. Stock-based compensation cost for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date. See Note 13.

Net Income Per Common Share – In accordance with FASB ASC 260, net income per common share, on a basic and diluted basis, is presented for all periods. Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common equivalent shares outstanding. The calculation of common equivalent shares assumes the exercise of dilutive stock options, net of assumed treasury share repurchases at average market prices, as applicable.

Concentration of Risk – Certain of the Company’s products utilize components (raw materials and/or co-packing services) from a limited number of sources. A disruption in the supply of such components could significantly affect the Company’s revenues from those products, as alternative sources of such components may not be available at commercially reasonable rates or within a reasonably short time period. The Company continues to endeavor to secure the availability of alternative sources for such components and minimize the risk of any disruption in production.

The Coca-Cola Company (“TCCC”), through certain wholly-owned subsidiaries (the “TCCC Subsidiaries”), accounted for approximately 3%, 3% and 2% of the Company’s net sales for the years ended December 31, 2025, 2024 and 2023, respectively.

Coca-Cola Europacific Partners accounted for approximately 15%, 14% and 13% of the Company’s net sales for the years ended December 31, 2025, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for each of the years ended December 31, 2025, 2024 and 2023.

Credit Risk – The Company sells its products nationally and internationally, primarily to bottlers and full service beverage distributors (“bottlers/distributors”), retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for estimated credit losses, and historically, such losses have been within management’s expectations.

Fair Value of Financial Instruments – The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to the relatively short maturity of the respective instruments.

Use of Estimates – The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recent Accounting Pronouncements – In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this update primarily require more detailed disclosures related to the rate reconciliation and income taxes paid. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15,

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

2024. The Company adopted ASU 2023-09 on a prospective basis during the year ended December 31, 2025, which did not have a material impact on the Company’s financial position, results of operations and liquidity.

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The amendments in this update require the Company to disaggregate key expense categories such as purchases of inventory, employee compensation, depreciation and intangible asset amortization, within its financial statements. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is evaluating the impact ASU 2024-03 will have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update require internal-use software development cost capitalization to begin when both of the following occur: management has authorized and committed to funding the software project, and it is probable that the project will be completed and that the software will be used to perform its intended function. The amendments also eliminate the accounting considerations of software development stages. The amendments in ASU 2025-06 are effective for fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact ASU 2025-06 will have on its consolidated financial statements.

​

2.REVENUE RECOGNITION

Revenues are accounted for in accordance with FASB ASC 606 “Revenue from Contracts with Customers”. The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment (“Monster Energy® Drinks”), which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, (ii) Strategic Brands segment (“Strategic Brands”), which is primarily comprised of the various energy drink brands acquired from The Coca-Cola Company (“TCCC”) in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment (“Alcohol Brands”), which is comprised of various craft beers, FMBs and hard seltzers and (iv) Other segment (“Other”), which is comprised of certain products sold by American Fruits and Flavors, LLC, a wholly-owned subsidiary of the Company, to independent third-party customers (the “AFF Third-Party Products”).

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, FMBs and hard seltzers primarily to beer distributors in the United States.

The majority of the Company’s revenue is recognized when it satisfies a single performance obligation by transferring control of its products to a customer. Control is generally transferred when the Company’s products are either shipped or delivered based on the terms contained within the underlying contracts or agreements. Certain of the Company’s bottlers/distributors may also perform a separate function as a co-packer on the Company’s behalf. In such cases, control of the Company’s products passes to such bottlers/distributors when they notify the Company that they have taken possession or transferred the relevant portion of the Company’s finished goods. The Company’s general payment terms are short-term in duration. The Company does not have significant financing components or payment terms. The Company did not have any material unsatisfied performance obligations as of December 31, 2025 and 2024.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

The Company excludes from revenues all taxes assessed by a governmental authority that are imposed on the sale of its products and collected from customers.

Distribution expenses to transport the Company’s products, where applicable, and warehousing expense after manufacture are accounted for within operating expenses.

Promotional and other allowances (variable consideration) recorded as a reduction to net sales for the Company’s energy drink products, primarily include consideration given to the Company’s non-alcohol bottlers/distributors or customers including, but not limited to, the following:

	●	discounts granted off list prices to support price promotions to end-consumers by retailers;

	●	reimbursements given to the Company’s bottlers/distributors for agreed portions of their promotional spend with retailers, including slotting, shelf space allowances and other fees for both new and existing products;

	●	the Company’s agreed share of fees given to bottlers/distributors and/or directly to retailers for advertising, in-store marketing and promotional activities;

	●	the Company’s agreed share of slotting, shelf space allowances and other fees given directly to retailers, club stores and/or wholesalers;

	●	incentives given to the Company’s bottlers/distributors and/or retailers for achieving or exceeding certain predetermined sales goals;

	●	discounted and/ or free products or cash rebates;

	●	contractual fees given to the Company’s bottlers/distributors related to sales made directly by the Company to certain customers that fall within the bottlers’/distributors’ sales territories; and

	●	commissions to TCCC based on the Company’s sales to wholly-owned subsidiaries of TCCC (the “TCCC Subsidiaries”) and/or to TCCC bottlers/distributors accounted for under the equity method by TCCC (the “TCCC Related Parties”).

The Company’s promotional allowance programs for its energy drink products are executed through separate agreements in the ordinary course of business. These agreements generally provide for one or more of the arrangements described above and are of varying durations, typically ranging from one week to one year. The Company’s promotional and other allowances for its energy drink products are calculated based on various programs with bottlers/distributors and retail customers, and accruals are established at the time of initial product sale for the Company’s anticipated liabilities. These accruals are based on agreed upon terms as well as the Company’s historical experience with similar programs and require management’s judgment with respect to estimating consumer participation and/or bottler/distributor and retail customer performance levels. Differences between such estimated expenses and actual expenses for promotional and other allowance costs have historically been insignificant and are recognized in earnings in the period such differences are determined. Promotional and other allowances for our Alcohol Brands segment primarily include price promotions where permitted.

Amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors relating to the costs associated with terminating the Company’s prior distributors, are accounted for as deferred revenue and recognized as revenue ratably over the anticipated life of the respective distribution agreements, generally over 20 years.

The Company also enters into license agreements that generate revenues associated with third-party sales of non-beverage products bearing the Company’s trademarks including, but not limited to, clothing, hats, t-shirts, jackets, helmets and automotive wheels.

Management believes that adequate provision has been made for cash discounts, returns and spoilage based on the Company’s historical experience.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Disaggregation of Revenue

The following table disaggregates the Company’s revenue by geographical markets and reportable segments:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2025
​	​	​	​	​	​	​	​	​	​	​	Latin		​	​	​
​	​	​	​	​	​	​	​	Asia Pacific		​	America		​	​	​
​	​	U.S. and		​	​	​	​	(including		​	and		​	​	​
Net Sales	​ ​ ​	Canada		​ ​ ​	EMEA1		​ ​ ​	Oceania)		​ ​ ​	Caribbean		​ ​ ​	Total
Monster Energy® Drinks	​	$	4,704,483	​	$	1,702,767	​	$	581,290	​	$	677,331	​	$	7,665,871
Strategic Brands	​		208,452	​		196,801	​		42,823	​		20,640	​		468,716
Alcohol Brands	​	​	134,720	​	​	—	​	​	—	​	​	—	​	​	134,720
Other	​		25,036	​		—	​		—	​		—	​		25,036
Total Net Sales	​	$	5,072,691	​	$	1,899,568	​	$	624,113	​	$	697,971	​	$	8,294,343

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2024
​	​	​	​	​	​	​	​	​	​	​	Latin		​	​	​
​	​	​	​	​	​	​	​	Asia Pacific		​	America		​	​	​
​	​	U.S. and		​	​	​	​	(including		​	and		​	​	​
Net Sales	​ ​ ​	Canada		​ ​ ​	EMEA1		​ ​ ​	Oceania)		​ ​ ​	Caribbean		​ ​ ​	Total
Monster Energy® Drinks	​	$	4,320,026	​	$	1,399,461	​	$	500,145	​	$	644,965	​	$	6,864,597
Strategic Brands	​		205,948	​		163,905	​		40,891	​		21,489	​		432,233
Alcohol Brands	​	​	172,313	​	​	—	​	​	—	​	​	—	​	​	172,313
Other	​		23,566	​		—	​		—	​		—	​		23,566
Total Net Sales	​	$	4,721,853	​	$	1,563,366	​	$	541,036	​	$	666,454	​	$	7,492,709

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31, 2023
​	​	​	​	​	​	​	​	​	​	​	Latin		​	​	​
​	​	​	​	​	​	​	​	Asia Pacific		​	America		​	​	​
​	​	U.S. and		​	​	​	​	(including		​	and		​	​	​
Net Sales	​ ​ ​	Canada		​ ​ ​	EMEA1		​ ​ ​	Oceania)		​ ​ ​	Caribbean		​ ​ ​	Total
Monster Energy® Drinks	​	$	4,202,537	​	$	1,257,471	​	$	484,459	​	$	610,622	​	$	6,555,089
Strategic Brands	​		199,183	​		133,188	​		29,990	​		14,228	​		376,589
Alcohol Brands	​	​	184,855	​	​	—	​	​	—	​	​	—	​	​	184,855
Other	​		23,494	​		—	​		—	​		—	​		23,494
Total Net Sales	​	$	4,610,069	​	$	1,390,659	​	$	514,449	​	$	624,850	​	$	7,140,027

​

1_Europe, Middle East and Africa (“EMEA”)_

Contract Liabilities

Amounts received from certain bottlers/distributors at inception of their distribution contracts or at the inception of certain sales/marketing programs are accounted for as deferred revenue. As of December 31, 2025 and 2024, the Company had $205.3 million and $224.8 million of deferred revenue, respectively, which is included in current and long-term deferred revenue in the Company’s accompanying consolidated balance sheet. During the years ended December 31, 2025, 2024 and 2023, $40.0 million, $39.9 million and $40.0 million, respectively, of deferred revenue, was recognized in net sales. See Note 8.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

3.INVESTMENTS

The following table summarizes the Company’s investments at December 31, 2025. The Company held no short-term or long-term investments at December 31, 2024.

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	Continuous		​	Continuous
​	​	​	​	​	Gross		​	Gross		​	​	​	​	Unrealized		​	Unrealized
​	​	​	​	​	Unrealized		​	Unrealized		​	​	​	​	Loss Position		​	Loss Position
​	​	Amortized		​	Holding		​	Holding		​	Fair		​	less than 12		​	greater than
December 31, 2025	​ ​ ​	Cost		​ ​ ​	Gains		​ ​ ​	Losses		​ ​ ​	Value		​ ​ ​	Months		​ ​ ​	12 Months
Available-for-sale	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Short-term:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Commercial paper	​	$	90,418	​	$	1	​	$	—	​	$	90,419	​	$	—	​	$	—
Certificates of deposit	​	​	12,728	​	​	—	​	​	—	​	​	12,728	​	​	—	​	​	—
Municipal securities	​		674	​	​	1	​	​	—	​	​	675	​	​	—	​	​	—
U.S. treasuries	​	​	489,007	​		492	​		—	​		489,499	​		—	​		—
Corporate bonds	​	​	83,639	​	​	124	​	​	—	​	​	83,763	​	​	—	​	​	—
Long-term:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Municipal securities	​	​	1,206	​	​	1	​	​	—	​	​	1,207	​	​	—	​	​	—
U.S. treasuries	​	​	259,613	​	​	353	​	​	—	​	​	259,966	​	​	—	​	​	—
Corporate bonds	​	​	225,867	​	​	289	​	​	—	​	​	226,156	​	​	—	​	​	—
Total	​	$	1,163,152	​	$	1,261	​	$	—	​	$	1,164,413	​	$	—	​	$	—

​

During the years ended December 31, 2025, 2024 and 2023, realized gains or losses recognized on the sale of investments were not significant.

The Company’s investments at December 31, 2025 carried investment grade credit ratings.

The following table summarizes the underlying contractual maturities of the Company’s investments at December 31, 2025. The Company held no short-term or long-term investments at December 31, 2024.

​

​	​	​	​	​	​	​
​	​	December 31, 2025
​	​ ​ ​	Amortized Cost		​ ​ ​	Fair Value
Less than 1 year:	​	​	​	​	​	​
Commercial paper	​	$	90,418	​	$	90,419
Certificates of deposit	​		12,728	​		12,728
Municipal securities	​		674	​		675
U.S. treasuries	​	​	489,007	​	​	489,499
Corporate bonds	​	​	83,639	​	​	83,763
Due 1 - 10 years:	​	​	​	​	​	​
Municipal securities	​		1,206	​		1,207
U.S. treasuries	​	​	259,613	​	​	259,966
Corporate bonds	​	​	225,867	​	​	226,156
Total	​	$	1,163,152	​	$	1,164,413

​

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

4.FAIR VALUE OF CERTAIN FINANCIAL ASSETS AND LIABILITIES

ASC 820, “Fair Value Measurement”, provides a framework for measuring fair value and requires disclosures regarding fair value measurements. ASC 820 defines fair value as the price that would be received on the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The three levels of inputs required by the standard that the Company uses to measure fair value are summarized below.

	●	Level 1: Quoted prices in active markets for identical assets or liabilities.

	●	Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

	●	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

ASC 820 requires the use of observable market inputs (quoted market prices) when measuring fair value and requires a Level 1 quoted price to be used to measure fair value whenever possible.

The following tables present the fair value of the Company’s financial assets and liabilities that are recorded at fair value on a recurring basis, segregated among the appropriate levels within the fair value hierarchy at:

​

​	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2025	​ ​ ​	Level 1		​ ​ ​	Level 2		​ ​ ​	Level 3		​ ​ ​	Total
Cash	​	$	1,244,954	​	$	—	​	$	—	​	$	1,244,954
Money market funds	​		787,293	​		—	​		—	​		787,293
Commercial paper	​	​	—	​	​	90,419	​	​	—	​	​	90,419
Certificates of deposit	​	​	—	​	​	68,597	​	​	—	​	​	68,597
Municipal securities	​	​	—	​	​	1,882	​	​	—	​	​	1,882
U.S. treasuries	​	​	—	​	​	749,465	​	​	—	​	​	749,465
Corporate bonds	​	​	—	​	​	309,919	​	​	—	​	​	309,919
Foreign currency derivatives	​		—	​		(1,474)	​		—	​		(1,474)
Commodity derivatives	​	​	—	​	​	35,188	​	​	—	​	​	35,188
Total	​	$	2,032,247	​	$	1,253,996	​	$	—	​	$	3,286,243
​	​	​	​	​	​	​	​	​	​	​	​	​
Amounts included in:	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	2,032,247	​	$	55,870	​	$	—	​	$	2,088,117
Short-term investments	​	​	—	​	​	677,084	​	​	—	​	​	677,084
Accounts receivable, net	​		—	​		33,667	​		—	​		33,667
Other assets	​	​	—	​	​	3,530	​	​	—	​	​	3,530
Investments	​	​	—	​	​	487,329	​	​	—	​	​	487,329
Accrued liabilities	​		—	​		(3,484)	​		—	​		(3,484)
Total	​	$	2,032,247	​	$	1,253,996	​	$	—	​	$	3,286,243

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

​	​	​	​	​	​	​	​	​	​	​	​	​
December 31, 2024	​ ​ ​	Level 1		​ ​ ​	Level 2		​ ​ ​	Level 3		​ ​ ​	Total
Cash	​	$	1,103,647	​	$	—	​	$	—	​	$	1,103,647
Money market funds	​		396,306	​		—	​		—	​		396,306
Certificates of deposit	​	​	—	​	​	33,334	​	​	—	​	​	33,334
Foreign currency derivatives	​		—	​		799	​		—	​		799
Commodity derivatives	​	​	—	​	​	(785)	​	​	—	​	​	(785)
Total	​	$	1,499,953	​	$	33,348	​	$	—	​	$	1,533,301
​	​	​	​	​	​	​	​	​	​	​	​	​
Amounts included in:	​	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	1,499,953	​	$	33,334	​	$	—	​	$	1,533,287
Accounts receivable, net	​		—	​		5,991	​		—	​		5,991
Other assets	​	​	—	​	​	6	​	​	—	​	​	6
Accrued liabilities	​		—	​		(5,952)	​		—	​		(5,952)
Other liabilities	​	​	—	​	​	(31)	​	​	—	​	​	(31)
Total	​	$	1,499,953	​	$	33,348	​	$	—	​	$	1,533,301

​

The Company’s valuation of its Level 1 investments is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments is based on other observable inputs, specifically a market approach which utilizes valuation models, pricing systems, mathematical tools and other relevant information for the same or similar securities. The Company’s valuation of its Level 2 foreign currency exchange contracts is based on quoted market prices of the same or similar instruments, adjusted for counterparty risk. There were no transfers between Level 1 and Level 2 measurements during the years ended December 31, 2025 and 2024, and there were no changes in the Company’s valuation techniques.

Assets recognized or disclosed at fair value in the consolidated financial statements on a nonrecurring basis may include items such as property and equipment, goodwill and other intangible assets. These assets are measured at fair value whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Nonrecurring fair value measurements were not material for the year ended December 31, 2025.

​

5.INVENTORIES

Inventories consist of the following at December 31:

​

​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024
Raw materials	​	$	322,604	​	$	232,698
Work in process	​	​	1,114	​	​	1,200
Finished goods	​		475,905	​		503,209
​	​	$	799,623	​	$	737,107

​

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

6.PROPERTY AND EQUIPMENT, Net

Property and equipment consist of the following at December 31:

​

​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024
Land	​	$	188,889	​	$	178,056
Leasehold improvements	​		33,456	​		31,132
Furniture and fixtures	​		13,263	​		11,416
Office and computer equipment	​		25,191	​		28,029
Equipment	​		611,269	​		561,408
Buildings	​		410,189	​		280,663
Vehicles	​	​	83,066	​	​	72,564
Assets under construction	​		55,252	​		178,980
​	​		1,420,575	​		1,342,248
Less: accumulated depreciation and amortization	​		(339,031)	​		(295,224)
​	​	$	1,081,544	​	$	1,047,024

​

Total depreciation and amortization expense recorded was $95.1 million, $72.9 million and $63.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. Assets under construction are not depreciated until in service date.

​

7.GOODWILL AND OTHER INTANGIBLE ASSETS

The following is a roll-forward of goodwill for the years ended December 31, 2025 and 2024 by reportable segment:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Monster		​	​		​	​		​	​		​	​
​	​	Energy®		​	Strategic		​	Alcohol		​	​		​	​
​	​ ​ ​	Drinks		​ ​ ​	Brands		​ ​ ​	Brands*		​ ​ ​	Other		​ ​ ​	Total
Balance at December 31, 2024	​	$	693,644	​	$	637,999	​	$	—	​	$	—	​	$	1,331,643
Acquisitions	​	​	—	​	​	—	​	​	—	​	​	—	​	​	—
Balance at December 31, 2025	​	$	693,644	​	$	637,999	​	$	—	​	$	—	​	$	1,331,643

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Monster		​	​		​	​		​	​		​	​
​	​	Energy®		​	Strategic		​	Alcohol		​	​		​	​
​	​ ​ ​	Drinks		​ ​ ​	Brands		​ ​ ​	Brands*		​ ​ ​	Other		​ ​ ​	Total
Balance at December 31, 2023	​	$	693,644	​	$	637,999	​	$	86,298	​	$	—	​	$	1,417,941
Acquisitions	​		—	​		—	​		—	​		—	​		—
Impairments*	​		—	​		—	​		(86,298)	​		—	​		(86,298)
Balance at December 31, 2024	​	$	693,644	​	$	637,999	​	$	—	​	$	—	​	$	1,331,643

​

*Accumulated goodwill impairment balance at December 31, 2025 and 2024 was $86.3 million related entirely to Alcohol Brands. There were no impairments prior to the year ended December 31, 2024_._

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Intangible assets consist of the following at:

​

​	​	​	​	​	​	​
​	​ ​ ​	December 31,		​ ​ ​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
Amortizing intangibles	​	$	137,664	​	$	183,800
Accumulated amortization	​		(86,999)	​		(86,703)
​	​		50,665	​		97,097
Non-amortizing intangibles	​		1,328,603	​		1,317,155
​	​	$	1,379,268	​	$	1,414,252

​

No impairment charges were recorded to goodwill and other indefinite-lived intangible assets for the year ended December 31, 2025. For the year ended December 31, 2024, as a result of operating and financial performance not meeting projections due in part to challenges in the category, as well as a decrease in projected ongoing operating and financial performance related to the Alcohol Brands reporting unit, the Company determined that the conditions indicated that indefinite-lived intangible assets within the Alcohol Brands reporting unit were more-likely-than-not impaired and performed an impairment test to compare the fair value of these indefinite-lived intangible assets, consisting of goodwill, trademarks and permits, with their respective carrying values and with the carrying value of the Alcohol Brands reporting unit. As a result of this analysis, the Company recorded impairment charges of $86.3 million related to goodwill of the Alcohol Brands reporting unit for the year ended December 31, 2024. Further, for the years ended December 31, 2024 and 2023, impairment charges of $40.8 million and $38.7 million were recorded to other indefinite-lived intangible assets related primarily to the Alcohol Brands segment. Impairment charges are included in operating expenses in the consolidated statements of income.

Amortizing intangibles primarily consist of computer software, tradenames and customer relationships. All amortizing intangibles have been assigned an estimated finite useful life, and such intangibles are amortized on a straight-line basis over the number of years that approximate their respective useful lives, generally three to ten years. Total amortization expense recorded was $19.3 million, $7.5 million and $5.9 million for the years ended December 31, 2025, 2024 and 2023, respectively. For the year ended December 31, 2025, impairment charges of $38.4 million were recorded to certain finite-lived intangible assets related to the Alcohol Brands segment. No impairment charges were recorded to finite-lived intangible assets for the years ended December 31, 2024 and 2023. Impairment charges are included in operating expenses in the consolidated statements of income.

The following is the future estimated amortization expense related to amortizing intangibles as of December 31, 2025:

​

​	​	​	​
Year Ending December 31:	​ ​ ​	​	​
2026	​	$	10,568
2027	​	​	9,104
2028	​	​	6,706
2029	​	​	4,590
2030	​	​	4,590
2031 and thereafter	​	​	15,107
​	​	$	50,665

​

At December 31, 2025, non-amortizing other intangible assets primarily consist of indefinite-lived tradenames, flavors and formulas.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

8.DISTRIBUTION AGREEMENTS

In accordance with ASC 420 “Exit or Disposal Cost Obligations”, the Company expenses distributor termination costs in the period in which the written notification of termination occurs. Termination costs recognized were not significant for the years ended December 31, 2025, 2024 and 2023.

In the normal course of business, amounts received pursuant to new and/or amended distribution agreements entered into with certain bottlers/distributors, relating to the costs associated with terminating agreements with the Company’s prior distributors, are accounted for as deferred revenue and are recognized as revenue ratably over the anticipated life of the respective distribution agreement, generally 20 years. Revenue recognized was $21.4 million, $21.5 million and $21.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

​

9.DEBT

The Company repaid the outstanding balance on long-term debt in April 2025. As of December 31, 2024, the Company’s long-term debt consisted of the following:

​

​	​	​	​
​	​	December 31,
​	​ ​ ​	2024
Term loan	​	$	375,000
Revolving credit facility	​		—
Total debt	​		375,000
Less: unamortized debt issuance costs	​		(1,049)
Total debt, net of unamortized debt issuance costs	​		373,951
Less: current portion of long-term debt	​		—
Long-term debt	​	$	373,951

​

In May 2024, the Company entered into a credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders (the “Original Credit Agreement”), which provided for senior unsecured credit facilities in an aggregate principal amount of $1.50 billion (collectively, the “Credit Facilities”). The Credit Facilities previously consisted of a $750.0 million term loan (the “Term Loan”) and up to $750.0 million in multicurrency revolving loan commitments (the “Revolving Credit Facility”). The Term Loan was repaid in April 2025 with no additional borrowings permitted. In addition, pursuant to Amendment No. 1 to the Original Credit Agreement, dated as of October 17, 2025, among the Company, JPMorgan Chase Bank, N.A., as administrative agent, and certain other lenders (the “Amended Credit Agreement”), the Company’s aggregate borrowing capacity under the Revolving Credit Facility has been reduced to $500.0 million. Borrowings under the Revolving Credit Facility bear interest at a variable rate per annum equal to the applicable rate plus margin (as defined in the Amended Credit Agreement). Borrowings may be repaid at any time during the term of the Revolving Credit Facility and may be reborrowed prior to the maturity date, which is set to occur in May 2029. As of December 31, 2025, no borrowings were outstanding under the Credit Facilities, and the Company was in compliance with all covenants under the Amended Credit Agreement.

Additionally, the Company has a line of credit of up to $15.0 million with HSBC Bank (China) Company Limited, Shanghai Branch. As of December 31, 2025, no amount was outstanding on this line of credit.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

10.COMMITMENTS AND CONTINGENCIES

Contractual Obligations – The Company had the following contractual obligations related primarily to sponsorships and other marketing activities as of December 31, 2025:

​

​	​	​	​
Year Ending December 31:	​ ​ ​	​
2026	​	$	318,009
2027	​	​	116,925
2028	​	​	75,540
2029	​	​	48,902
2030	​	​	10,420
2031 and thereafter	​	​	437
​		$	570,233

​

Purchase Commitments – The Company had purchase commitments aggregating approximately $216.6 million at December 31, 2025, which represented commitments made by the Company and its subsidiaries to various suppliers of raw materials for the production of its products. These obligations vary in terms but are generally satisfied within one year.

The Company purchases various raw material items, including, but not limited to, flavors, ingredients, supplement ingredients, containers, milk, glucose, sucralose and cream, from a limited number of suppliers. An interruption in supply from any of such resources could result in the Company’s inability to produce certain products for limited or possibly extended periods of time. The aggregate value of purchases from suppliers of such limited resources described above for the years ended December 31, 2025, 2024 and 2023 was $661.6 million, $577.0 million and $590.5 million, respectively.

Guarantees – The Company from time to time enters into certain types of contracts that contingently require the Company to indemnify parties against third-party claims. These contracts primarily relate to: (i) certain agreements with the Company’s officers, directors and employees under which the Company may be required to indemnify such persons for liabilities arising out of their employment relationship, (ii) certain distribution or purchase agreements under which the Company may have to indemnify the Company’s customers from any claim, liability or loss arising out of any actual or alleged injury or damages suffered in connection with the consumption or purchase of the Company’s products or the use of Company trademarks, and (iii) certain real estate leases, under which the Company may be required to indemnify property owners for liabilities and other claims arising from the Company’s use of the applicable premises. The terms of such obligations vary and typically, a maximum obligation is not explicitly stated. Generally, the Company believes that its insurance coverage is adequate to cover any resulting liabilities or claims.

Litigation – From time to time in the normal course of business, the Company is named in litigation, including mediation, arbitration, administrative proceedings, labor and employment matters, personal injury matters, consumer class actions, intellectual property matters, data privacy matters, and claims, including from prior distributors. Although it is not possible to predict the ultimate outcome of such litigation, based on the facts known to the Company, management believes that such litigation in aggregate will likely not have a material adverse effect on the Company’s financial position or results of operations.

The Company evaluates, on a quarterly basis, developments in legal proceedings and other matters that could cause an increase or decrease in the amount of the liability that is accrued, if any, and any related insurance reimbursements. As of December 31, 2025 and 2024, $36.2 million and $16.8 million, respectively, of loss contingencies were included in the Company’s accompanying consolidated balance sheets.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

11.ACCUMULATED OTHER COMPREHENSIVE LOSS

The components of accumulated other comprehensive loss, after tax, are as follows at December 31:

​

​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024
Accumulated net unrealized gain (loss) on available-for-sale securities		$	1,263		$	—
Accumulated foreign currency translation gain (loss)	​	​	(108,059)	​	​	(269,930)
Accumulated net gain (loss) on commodity derivatives	​	​	45,955	​	​	443
Total accumulated other comprehensive loss		$	(60,841)		$	(269,487)

​

​

12.TREASURY STOCK

On August 19, 2024, the Company’s Board of Directors authorized a share repurchase program for the purchase of up to an additional $500.0 million of the Company’s outstanding common stock (the “August 2024 Repurchase Plan”). During the year ended December 31, 2025, no shares were repurchased under the August 2024 Repurchase Plan. As of February 26, 2026, $500.0 million remained available for repurchase under the August 2024 Repurchase Plan.

The aggregate amount of the Company’s outstanding common stock that remains available for repurchase under all previously authorized repurchase plans is $500.0 million as of February 26, 2026.

During the year ended December 31, 2025, 1.5 million shares of common stock were purchased from employees in lieu of cash payments for options exercised or withholding taxes due for a total amount of $103.6 million. While such purchases are considered common stock repurchases, they are not counted as purchases against the Company’s authorized share repurchase programs. Such shares are included in common stock in treasury in the accompanying consolidated balance sheet at December 31, 2025.

13.STOCK-BASED COMPENSATION

The Company has two stock-based compensation plans under which shares were available for grant as of December 31, 2025: (i) the Monster Beverage Corporation 2020 Omnibus Incentive Plan (the “2020 Omnibus Incentive Plan”), which includes the Monster Beverage Corporation Deferred Compensation Plan as a sub plan thereunder, and (ii) the Monster Beverage Corporation 2017 Compensation Plan for Non-Employee Directors as Amended and Restated on February 23, 2022 (the “2017 Directors Plan”), which includes the Monster Beverage Corporation Deferred Compensation Plan for Non-Employee Directors as a sub plan thereunder. The 2020 Omnibus Incentive Plan was approved by the Board of Directors on April 14, 2020 and approved by the stockholders of the Company at the annual meeting of the Company’s stockholders held on June 3, 2020 (the “Effective Date”). The 2020 Omnibus Incentive Plan replaced the Monster Beverage Corporation 2011 Omnibus Incentive Plan (the “2011 Omnibus Incentive Plan”).

The 2020 Omnibus Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other share-based awards up to an aggregate of 92,338,734 shares of the Company’s common stock, comprised of 64,000,000 new shares of common stock reserved under the 2020 Omnibus Incentive Plan, which were authorized on the Effective Date, and 28,338,734 shares of common stock that were available for grant under the 2011 Omnibus Incentive Plan as of December 31, 2019 and prior to the Effective Date. Shares authorized under the 2020 Omnibus Incentive Plan are reduced by one (1) share for options or stock appreciation rights granted under the 2020 Omnibus Incentive Plan and for any grants after December 31, 2019 under the 2011 Omnibus Incentive Plan, and by 2.6 shares for each share granted or issued with respect to a Full Value Award under either the 2020 Omnibus Incentive Plan or for any shares granted after December 31, 2019 under the 2011 Omnibus Incentive Plan. A “Full Value Award” is an award other than an incentive stock option, a non-qualified stock option, or a stock appreciation right, which is settled by the issuance of shares. Options granted under the 2020 Omnibus Incentive Plan may be incentive stock options under Section 422 of the Internal Revenue Code, as amended (the “Code”), or non-qualified stock options.

Shares previously granted under the 2011 Omnibus Incentive Plan after December 31, 2019 and prior to the Effective Date of the 2020 Omnibus Incentive Plan reduced the number of shares available for grant under the 2020 Omnibus Incentive Plan. As of December 31, 2025, 23,062,505 shares of the Company’s common stock have been granted, net of cancellations, and 62,964,030 shares

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

(as adjusted for Full Value Awards) of the Company’s common stock remain available for grant under the 2020 Omnibus Incentive Plan.

The Compensation Committee of the Board of Directors (the “Compensation Committee”) has sole and exclusive authority to grant stock awards to all employees who are not new hires and to all new hires who are subject to Section 16 of the Exchange Act (“Section 16”). Each of the Compensation Committee and the Executive Committee of the Board of Directors (the “Executive Committee”) independently has the authority to grant stock awards to (i) new hires and (ii) employees receiving a promotion, in each case, who are not Section 16 employees. Awards granted by the Executive Committee are not subject to approval or ratification by the Board of Directors or the Compensation Committee. Options granted under the 2020 Omnibus Incentive Plan generally vest over a three- to five-year period from the grant date and are generally exercisable up to 10 years after the grant date. Restricted stock units granted under the 2020 Omnibus Incentive Plan generally vest over a three- or five-year period from the grant date. Performance share units will generally vest based on an award recipient’s continuous employment through a cumulative three-year performance period and the achievement of financial performance goals specified for the applicable award during such performance period.

In 2016, the Company adopted the Deferred Compensation Plan (as a sub plan to the 2011 Omnibus Incentive Plan), pursuant to which eligible employees may elect to defer cash and/or equity based compensation and to receive the deferred amounts, together with an investment return (positive or negative), either at a pre-determined time in the future or upon termination of employment with the Company or its subsidiaries or affiliates that are participating employers under the Deferred Compensation Plan, as provided under the Deferred Compensation Plan and in relevant deferral elections. Deferrals under the Deferred Compensation Plan are unfunded and unsecured. As of December 31, 2025 deferrals under the Deferred Compensation Plan are solely comprised of cash compensation and equity compensation and are not material in the aggregate.

In 2017, the Company adopted the 2017 Directors Plan, a successor plan to the 2009 Monster Beverage Corporation Stock Incentive Plan for Non-Employee Directors. The 2017 Directors Plan permits the granting of stock options, stock appreciation rights, restricted shares or restricted stock units, deferred awards, dividend equivalents, and other share-based awards up to an aggregate of 2,500,000 shares of common stock of the Company to non-employee directors of the Company.

Each calendar year, a non-employee director will receive an annual retainer and annual equity award, as provided for in the 2017 Directors Plan, which may be modified from time to time. In February 2022, the Board of Directors amended and restated the 2017 Directors Plan to provide for increases to the annual cash retainer and annual equity retainer that non-employee directors are entitled to receive. Currently, non-employee directors receive an annual equity retainer of approximately $175,000 in the form of restricted stock units at each annual meeting of the Company’s stockholders or promptly thereafter. A non-employee director’s annual award of restricted stock units will generally vest on the earliest to occur of: (a) the last business day immediately preceding the annual meeting of the Company’s stockholders in the calendar year following the calendar year in which the grant date occurs, (b) a Change of Control (as defined in the 2017 Directors Plan), (c) the non-employee director’s death, or (d) the date of the non-employee director’s separation from service due to disability, so long as the non-employee director remains a non-employee director through such date. The Board of Directors may in its discretion award non-employee directors stock options, stock appreciation rights, restricted stock and other share-based awards in lieu of or in addition to restricted stock units. The Board of Directors may amend or terminate the 2017 Directors Plan at any time, subject to certain limitations set forth in the 2017 Directors Plan. As of December 31, 2025, 316,259 shares of the Company’s common stock had been granted under the 2017 Directors Plan, and 2,183,741 shares of the Company’s common stock remain available for grant.

In 2017, the Company adopted the Deferred Compensation Plan for Non-Employee Directors (as a sub plan to the 2017 Directors Plan), pursuant to which the Board of Directors may permit non-employee directors to elect, at such times and in accordance with rules and procedures (or sub-plan) adopted by the Board of Directors (which are intended to comply with Section 409A of the Code, as applicable), to receive all or any portion of such non-employee director’s compensation, whether payable in cash or in equity, on a deferred basis. Deferrals under the Deferred Compensation Plan for Non-Employee Directors are unfunded and unsecured. As of December 31, 2025, deferrals under the Deferred Compensation Plan for Non-Employee Directors are solely comprised of cash compensation and equity compensation and are not material in the aggregate. The 2017 Directors Plan was adopted to effectuate any such deferrals. The 2017 Directors Plan is administered by the Board of Directors. Each award granted under the 2017 Directors Plan will be evidenced by a written agreement and will contain the terms and conditions that the Board of Directors deems appropriate.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

In February 2022, as part of the Board of Directors’ amendment and restatement of the 2017 Directors Plan, such amendment and restatement also introduced the requirement for each non-employee director to satisfy the share ownership guidelines set forth below, as may be modified by the Board of Directors from time to time. The current share ownership guidelines provide that non-employee directors of the Company must:

	●	Hold shares of Company common stock having a total value of five times the annual retainer payable to a non-employee director (excluding any portion of the annual retainer attributable to a non-employee director’s service as a member of a subcommittee, as a chair of a subcommittee or as the lead independent director, as applicable). For this purpose, deferred shares or deferred restricted stock units will be deemed held, to the extent vested.

	●	The minimum stock ownership level must be achieved by each non-employee director by the fifth anniversary of such non-employee director’s initial appointment to the Board of Directors.

	●	Once achieved, ownership of the guideline amount should be maintained for so long as the non-employee director retains his or her seat on the Board of Directors.

	●	There may be rare instances where these guidelines would place a hardship on a non-employee director. In these cases or in similar circumstances, the Board of Directors will make the final decision as to developing an alternative stock ownership guideline for a non-employee director that reflects the intention of these guidelines and his or her personal circumstances.

The Company recorded $125.7 million, $91.0 million and $68.8 million of compensation expense relating to outstanding options, restricted stock units, performance share units and other share-based awards during the years ended December 31, 2025, 2024 and 2023, respectively.

The tax benefit for tax deductions from non-qualified stock option exercises, disqualifying dispositions of incentive stock options and vesting of restricted stock units and performance share units for the years ended December 31, 2025, 2024 and 2023 was $37.1 million, $12.9 million and $62.2 million, respectively.

Stock Options

Under the Company’s stock-based compensation plans, all stock options granted through December 31, 2025 were granted at prices based on the fair value of the Company’s common stock on the date of grant. The Company records compensation expense for (i) employee stock options based on the estimated fair value of the options on the date of grant and (ii) for non-employee stock options based on the estimated fair value of the options as of the earlier of (1) the date at which a commitment for performance by the non-employee to earn the stock option is reached or (2) the date at which the non-employee’s performance is complete, in each case using the Black-Scholes-Merton option pricing formula with the assumptions included in the table below. The Company uses historical data to determine the exercise behavior, volatility and forfeiture rate of the options.

The following weighted-average assumptions were used to estimate the fair value of options granted during:

​

​	​	​	​	​	​	​	​
​	​ ​ ​	2025	​ ​ ​	2024	​ ​ ​	2023
Dividend yield	​	0.0	%	0.0	%	0.0	%
Expected volatility	​	26.7	%	27.4	%	27.6	%
Risk-free interest rate	​	4.19	%	4.18	%	3.75	%
Expected term	​	6.2 Years	​	6.4 Years	​	6.3 Years	​

​

Expected Volatility: The Company uses historical volatility as it provides a reasonable estimate of the expected volatility. Historical volatility is based on the most recent volatility of the stock price over a period of time equivalent to the expected term of the option.

Risk-Free Interest Rate: The risk-free interest rate is based on the U.S. treasury zero-coupon yield curve in effect at the time of grant for the expected term of the option.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Expected Term: The Company’s expected term represents the weighted-average period that the Company’s stock options are expected to be outstanding. The expected term is based on the expected time to post-vesting exercise of options by employees. The Company uses historical exercise patterns of previously granted options to derive employee behavioral patterns used to forecast expected exercise patterns.

The following table summarizes the Company’s activities with respect to its stock option plans as follows:

​

​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	Weighted	​	​	​
​	​	​	​	Weighted		​	Average	​	​	​
​	​	​	​	Average		​	Remaining	​	​	​
​	​	Number of	​	Exercise		​	Contractual	​	​	​
​	​	Shares (in	​	Price Per		​	Term (in	​	Aggregate
Options	​ ​ ​	thousands)	​ ​ ​	Share		​ ​ ​	years)	​ ​ ​	Intrinsic Value
Outstanding at January 1, 2025		27,088	​	$	38.98		5.8	​	$	400,207
Granted 01/01/25 - 03/31/25		1,299	​	$	55.09	​	​	​	​	​
Granted 04/01/25 - 06/30/25		21	​	$	60.28	​	​	​	​	​
Granted 07/01/25 - 09/30/25		—	​	$	—	​	​	​	​	​
Granted 10/01/25 - 12/31/25		23	​	$	66.51	​	​	​	​	​
Exercised		(5,942)	​	$	27.69	​	​	​	​	​
Cancelled or forfeited		(328)	​	$	52.58	​	​	​	​	​
Outstanding at December 31, 2025		22,161	​	$	42.80		5.8	​	$	750,594
Vested and expected to vest in the future at December 31, 2025	​	21,554	​	$	42.49	​	5.8	​	$	736,616
Exercisable at December 31, 2025		11,219	​	$	34.42		4.0	​	$	474,047

​

The following table summarizes information about stock options outstanding and exercisable at December 31, 2025:

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	Options Outstanding						​	Options Exercisable
​	​	​	​	​	​	​	​	Weighted	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	Average	​	Weighted		​	Number	​	Weighted
​	​	​	​	​	​	Number	​	Remaining	​	Average		​	Exercisable	​	Average
Range of Exercise					​	Outstanding	​	Contractual	​	Exercise		​	(in	​	Exercise
Prices ($)					​ ​ ​ ​	(in thousands)	​ ​ ​	Term (Years)	​ ​ ​	Price ($)		​ ​ ​	thousands)	​ ​ ​	Price ($)
$	20.91	-	$	29.37		3,854		1.7		$	26.52		3,854		$	26.52
$	29.84	-	$	31.20		3,111		3.6		$	30.40		3,111		$	30.40
$	31.73	-	$	33.71		40		4.1		$	32.80		40		$	32.80
$	36.62	-	$	36.62		3,497		6.2		$	36.62		1,561		$	36.62
$	38.96	-	$	48.30		2,823		6.7		$	45.85		1,358		$	44.91
$	48.90	-	$	48.90		20		5.7		$	48.90		14		$	48.90
$	50.82	-	$	50.82		3,360		7.2		$	50.82		827		$	50.82
$	51.38	-	$	59.52		1,470		9.1		$	54.90		30		$	53.86
$	60.30	-	$	60.30		3,960		8.2		$	60.30		424		$	60.30
$	63.83	-	$	66.51		26		9.8		$	66.13		—		$	—
​	​	​	​	​		22,161		5.8		$	42.80		11,219		$	34.42

​

The weighted-average grant-date fair value of options granted during the years ended December 31, 2025, 2024 and 2023 was $19.90 per share, $21.40 per share and $18.28 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was $214.7 million, $83.1 million and $333.5 million, respectively.

Cash received from option exercises under all plans for the years ended December 31, 2025, 2024 and 2023 was $164.6 million, $79.0 million and $130.3 million, respectively.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

At December 31, 2025, there was $116.0 million of total unrecognized compensation expense related to non-vested options granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.4 years.

Restricted Stock Units and Performance Share Units

The cost of stock-based compensation for restricted stock units and performance share units is measured based on the closing fair market value of the Company’s common stock at the date of grant. In the event that the Company has the option and intent to settle a restricted stock unit or performance share unit in cash, the award is classified as a liability and revalued at each balance sheet date.

The following table summarizes the Company’s activities with respect to non-vested restricted stock units and performance share units as follows:

​

​	​	​	​	​	​
​	​	​	​	Weighted-
​	​	Number of	​	Average
​	​	Shares (in	​	Grant-Date
​	​ ​ ​	thousands)	​ ​ ​	Fair Value
Non-vested at January 1, 2025	​	1,682	​	$	46.16
Granted 01/01/25 - 03/31/251	​	1,017	​	$	55.08
Granted 04/01/25 - 06/30/25	​	33	​	$	62.68
Granted 07/01/25 - 09/30/25	​	1	​	$	61.59
Granted 10/01/25 - 12/31/25	​	7	​	$	66.72
Vested	​	(635)	​	$	39.42
Forfeited/cancelled	​	(65)	​	$	42.83
Non-vested at December 31, 2025	​	2,040	​	$	53.15

​

1_The grant activity for performance share units is recorded based on the target performance level earning_ 100% of target performance share units. The actual number of performance share units earned could range from 0% to 200% of target depending on the achievement of pre-established performance goals.

​

The weighted-average grant-date fair value of restricted stock units and/or performance share units granted during the years ended December 31, 2025, 2024 and 2023 was $55.40, $58.77 and $51.24 per share, respectively. As of December 31, 2025, 1.7 million of restricted stock units and performance share units are expected to vest.

At December 31, 2025, total unrecognized compensation expense relating to non-vested restricted stock units and performance share units was $55.8 million, which is expected to be recognized over a weighted-average period of 2.2 years.

Other Share-Based Awards

The Company has granted other share-based awards to certain employees that are payable in cash. These awards are classified as liabilities and are valued based on the fair value of the award at the grant date and are remeasured at each reporting date until settlement, with compensation expense being recognized in proportion to the completed requisite service period up until date of settlement. At December 31, 2025, other share-based awards outstanding included grants that vest over three years payable in the first quarters of 2026, 2027 and 2028.

At December 31, 2025, there was $2.9 million of unrecognized compensation expense related to nonvested other share-based awards granted to employees under the Company’s stock-based compensation plans. That cost is expected to be recognized over a weighted-average period of 1.7 years.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Employee and Non-Employee Share-Based Compensation Expense

The table below shows the amounts recognized in the consolidated financial statements for the years ended December 31, 2025, 2024 and 2023 for share-based compensation related to employees and non-employees.

Employee and non-employee share-based compensation expense of $125.7 million for the year ended December 31, 2025 is comprised of $12.7 million relating to incentive stock options, $4.6 million relating to other share-based awards and $108.4 million relating to non-qualified stock options, restricted stock units and performance share units.

Employee and non-employee share-based compensation expense of $91.0 million for the year ended December 31, 2024 is comprised of $12.5 million relating to incentive stock options, $0.1 million relating to other share-based awards and $78.4 million relating to non-qualified stock options, restricted stock units and performance share units.

Employee and non-employee share-based compensation expense of $68.8 million for the year ended December 31, 2023 is comprised of $10.3 million relating to incentive stock options, $1.2 million relating to other share-based awards and $57.3 million relating to non-qualified stock options, restricted stock units and performance share units.

​

​	​	​	​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Operating expenses		$	125,687		$	90,985		$	68,836
Total employee and non-employee share-based compensation expense included in income, before income tax	​	​	125,687	​	​	90,985	​	​	68,836
Less: Amount of income tax benefit recognized in earnings	​	​	(39,745)	​	​	(16,006)	​	​	(64,401)
Amount charged against net income		$	85,942		$	74,979		$	4,435

​

​

14.INCOME TAXES

The Company evaluated the various provisions of the Tax Reform Act, including, the global intangible low-taxed income (“GILTI”) and the foreign derived intangible income provisions. The Company will treat any U.S. tax on foreign earnings under GILTI as a current period expense when incurred.

Consolidated retained earnings at December 31, 2025 included undistributed after-tax earnings from certain non-U.S. subsidiaries that were not indefinitely reinvested. At December 31, 2025, the Company had a deferred tax liability of $10.0 million for the estimated taxes associated with the repatriation of these earnings. Undistributed earnings of approximately $22.5 million in foreign subsidiaries were indefinitely reinvested in foreign operations. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested earnings was not practicable.

The domestic and foreign components of the Company’s income before provision for income taxes are as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Domestic*		$	2,302,984		$	1,540,619		$	1,809,418
Foreign*	​	​	179,545	​	​	448,840	​	​	259,064
Income before provision for income taxes		$	2,482,529		$	1,989,459		$	2,068,482

​

*After intercompany royalties, management fees and interest charges from the Company’s domestic to foreign entities of $110.3 million, $108.4 million and $101.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Components of the provision for income taxes are as follows:

​

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended December 31,
​	​ ​ ​	2025		​ ​ ​	2024		​ ​ ​	2023
Current:	​	​	​	​	​	​	​	​	​
Federal		$	308,032		$	273,825		$	259,911
State	​	​	61,927	​	​	55,087	​	​	47,079
Foreign	​	​	202,791	​	​	145,118	​	​	99,563
​	​	​	572,750	​	​	474,030	​	​	406,553
​	​	​	​	​	​	​	​	​	​
Deferred:	​	​	​	​	​	​	​	​	​
Federal	​	​	304	​	​	11,395	​	​	42,237
State	​	​	(1,228)	​	​	(900)	​	​	2,376
Foreign	​	​	(1,309)	​	​	(12,772)	​	​	(13,936)
​	​	​	(2,233)	​	​	(2,277)	​	​	30,677
​	​	​	​	​	​	​	​	​	​
Valuation allowance	​	​	6,580	​	​	8,658	​	​	264
​		$	577,097		$	480,411		$	437,494

​

A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate after the adoption of ASU 2023-09 for the year ended December 31, 2025 is as follows:

​

​	​	​	​	​	​	​
​	​ ​ ​	2025
U.S. federal statutory tax rate	​	$	521,331	​ ​ ​	21.0	%
State and local income tax, net of federal income tax effect1	​		49,399		2.0	%
Foreign tax effect	​		36,628		1.5	%
Effect of cross-border tax laws2	​		(1,390)		(0.1)	%
Tax Credits	​		​		​	​
Foreign tax credits	​		(21,357)		(0.9)	%
Energy-related tax credits	​		(4,335)		(0.2)	%
Change in valuation allowance	​		12,378		0.5	%
Nontaxable or nondeductible Items	​		(9,830)		(0.4)	%
Changes in unrecognized tax benefit	​		837		0.0	%
Other adjustments	​		(6,564)		(0.2)	%
Effective tax rate	​	$	577,097		23.2	%

​

(1)	State taxes in California_, Illinois, Minnesota, Michigan, New Jersey and New York make up the majority (greater than 50%) of the tax effect in this category._

(2)	Includes the impact of any tax credits.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

A reconciliation of the total provision for income taxes after applying the U.S. federal statutory rate of 21% to income before provision for income taxes to the reported provision for income taxes prior to the adoption of ASU 2023-09 are as follows for the years ended:

​

​	​	​	​	​	​	​
​	​	Year ended December 31,
​	​ ​ ​	2024		​ ​ ​	2023
U.S. federal tax expense at statutory rates		$	417,786		$	434,381
State income taxes, net of federal tax benefit	​	​	38,850	​	​	39,416
Permanent differences	​	​	(21,298)	​	​	(27,235)
Stock-based compensation	​	​	5,266	​	​	(43,846)
Residual tax on undistributed foreign earnings	​	​	3,903	​	​	8,423
Other	​	​	(10,843)	​	​	(5,132)
Foreign rate differential	​	​	38,089	​	​	31,223
Valuation allowance	​	​	8,658	​	​	264
​		$	480,411		$	437,494

​

Cash paid for income taxes, net of refunds received, by jurisdiction for the year ended December 31, 2025 is as follows:

​

​	​	​	​
​	​ ​ ​	2025
Federal	​	$	321,000
State	​		51,407
Foreign	​		​
Brazil	​		38,351
Ireland	​		28,495
Other	​		110,865
​	​	$	550,118

​

The amount of cash income taxes paid by the Company during the years ended December 31, 2024 and 2023 was $476.2 million and $423.2 million, respectively.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2025 and 2024 are presented in the table below. Certain amounts as of December 31, 2024 have been reclassified to conform to the presentation as of December 31, 2025.

​

​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024
Deferred tax assets:	​	​	​	​	​	​
Capitalization of inventory costs	​	$	11,326	​	$	13,253
Accrued compensation	​	​	16,722	​	​	13,941
Deferred revenue	​	​	48,208	​	​	53,802
Stock-based compensation	​	​	18,704	​	​	19,649
Net operating loss carryforward	​	​	25,632	​	​	33,159
Termination payments	​	​	32,920	​	​	39,489
Operating lease liabilities	​	​	13,078	​	​	13,201
Intangible assets	​	​	100,129	​	​	84,455
Accrued liabilities	​	​	21,824	​	​	16,725
Foreign tax credit carryforward	​	​	12,378	​	​	—
Other deferred tax assets	​	​	81,214	​	​	76,593
Total gross deferred tax assets		$	382,135		$	364,267
​	​	​	​	​	​	​
Deferred tax liabilities:	​	​	​	​	​	​
Amortization of intangibles		$	(107,473)		$	(93,511)
Operating lease ROU assets	​	​	(13,078)	​	​	(13,201)
Bang transaction gain	​	​	(11,672)	​	​	(11,740)
Depreciation	​	​	(56,344)	​	​	(57,168)
Other deferred tax liabilities	​	​	(13,749)	​	​	(12,741)
Total gross deferred tax liabilities	​	$	(202,316)	​	$	(188,361)
​	​	​	​	​	​	​
Valuation allowance	​	​	(45,245)	​	​	(38,665)
​	​	​	​	​	​	​
Net deferred tax assets		$	134,574		$	137,241

​

During the years ended December 31, 2025, 2024 and 2023, the Company recorded valuation allowances against certain deferred tax assets from cumulative net operating losses incurred by certain foreign subsidiaries of the Company, state income tax related to cumulative net operating losses incurred by certain U.S. subsidiaries, and foreign tax credit carryforwards. The effect of the valuation allowances and the subsequent related impact on the Company’s overall tax rate was to increase the Company’s provision for income taxes by $6.6 million, $8.6 million and $0.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. At December 31, 2025, the Company had net state operating loss carryforwards of approximately $96.0 million and net foreign operating loss carryforwards of approximately $77.0 million. Of these amounts, $68.4 million of net foreign operating loss carryforwards may be carried forward indefinitely. The remaining $104.6 million of net state and foreign operating loss carryforwards will begin to expire in 2026.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

The following is a roll-forward of the Company’s total gross unrecognized tax benefits, not including interest and penalties, for the years ended December 31, 2025, 2024 and 2023:

​

​	​	​	​
​	​ ​ ​	Gross Unrecognized Tax
​	​	Benefits
Balance at December 31, 2022	​	$	3,020
Additions for tax positions related to the current year	​		—
Additions for tax positions related to the prior year	​		739
Decreases for tax positions related to prior years	​		(650)
Balance at December 31, 2023	​	$	3,109
Additions for tax positions related to the current year	​	​	—
Additions for tax positions related to the prior year	​	​	631
Decreases for tax positions related to prior years	​	​	(1,114)
Balance at December 31, 2024	​	$	2,626
Additions for tax positions related to the current year	​	​	—
Additions for tax positions related to the prior year	​	​	1,440
Decreases for tax positions related to prior years	​		(836)
Balance at December 31, 2025	​	$	3,230

​

The Company recognizes accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Company’s consolidated financial statements. As of December 31, 2025, the Company had accrued approximately $0.9 million in interest and penalties related to unrecognized tax benefits. If the Company were to prevail on all uncertain tax positions, it would not have a significant impact on the Company’s effective tax rate.

It is expected that any change in the amount of unrecognized tax benefit change within the next 12 months will not be significant.

The Company is subject to U.S. federal income tax as well as to income tax in multiple state and foreign jurisdictions.

The Company is in various stages of examination with certain states and certain foreign jurisdictions. The Company’s 2022 through 2025 U.S. federal income tax returns are subject to examination by the IRS. The Company’s state income tax returns are generally subject to examination for the 2021 through 2025 tax years. The United Kingdom and Ireland income tax returns are subject to examination for the 2021 through 2025 tax years.

15.EARNINGS PER SHARE

A reconciliation of the weighted-average shares used in the basic and diluted earnings per common share computations for the years ended December 31, 2025, 2024 and 2023 is presented below (in thousands):

​

​	​	​	​	​	​	​
​	​ ​ ​	2025	​ ​ ​	2024	​ ​ ​	2023
Weighted-average shares outstanding:	​	​	​	​	​	​
Basic	​	975,887	​	1,004,566	​	1,044,887
Dilutive securities	​	8,564	​	8,541	​	13,094
Diluted	​	984,451	​	1,013,107	​	1,057,981

​

For the years ended December 31, 2025, 2024 and 2023, options and awards outstanding totaling 6.5 million shares, 7.8 million shares and 3.3 million shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

16.EMPLOYEE BENEFIT PLAN

Employees of the Company may participate in the Monster Beverage Corporation 401(k) Plan, a defined contribution plan, which qualifies under Section 401(k) of the Internal Revenue Code. Participating employees may contribute into a traditional plan with pretax salary or into a Roth plan with after tax salary up to statutory limits. The Company contributes 50% of the employee contribution, up to 8% of each employee’s earnings, which vest over four years (2 years of service = 50%, 3 years of service = 75%, 4 years of service = 100%). Matching contributions were $11.3 million, $10.4 million and $8.5 million for the years ended December 31, 2025, 2024 and 2023, respectively.

​

17.SEGMENT INFORMATION

The Company has four operating and reportable segments: (i) Monster Energy® Drinks segment, which is primarily comprised of the Company’s Monster Energy® drinks, Reign Total Body Fuel® high performance energy drinks, Reign Storm® total wellness energy drinks and Bang Energy® drinks, (ii) Strategic Brands segment, which is primarily comprised of the various energy drink brands acquired from TCCC in 2015 as well as the Company’s affordable energy brands, Predator® and Fury®, (iii) Alcohol Brands segment, which is comprised of various craft beers, FMBs and hard seltzers and (iv) Other segment, which is comprised of the AFF Third-Party Products.

The Company’s Monster Energy® Drinks segment primarily generates net operating revenues by selling ready-to-drink packaged drinks primarily to bottlers/distributors. In some cases, the Company sells ready-to-drink packaged drinks directly to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, drug stores, foodservice customers, value stores, e-commerce retailers and the military.

The Company’s Strategic Brands segment primarily generates net operating revenues by selling “concentrates” and/or “beverage bases” to authorized bottling and canning operations. Such bottlers generally combine the concentrates and/or beverage bases with sweeteners, water and other ingredients to produce ready-to-drink packaged energy drinks. The ready-to-drink packaged energy drinks are then sold by such bottlers to other bottlers/distributors and to retail grocery and specialty chains, wholesalers, club stores, mass merchandisers, convenience and gas chains, foodservice customers, drug stores, value stores, e-commerce retailers and the military. To a lesser extent, the Strategic Brands segment generates net operating revenues by selling certain ready-to-drink packaged energy drinks to bottlers/distributors.

Generally, the Monster Energy® Drinks segment generates higher per case net operating revenues, but lower per case gross profit margin percentages than the Strategic Brands segment.

The Company’s Alcohol Brands segment primarily generates operating revenues by selling kegged and ready-to-drink canned beers, FMBs and hard seltzers primarily to beer distributors in the United States.

Generally, the Alcohol Brands segment has lower gross profit margin percentages than the Monster Energy® Drinks segment.

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.” No asset information, other than goodwill and other intangible assets, has been provided in the Company’s reportable segments, as management does not measure or allocate such assets on a segment basis.

The Company’s chief operating decision maker is the chief executive officer (the “CEO”). The CEO assesses segments’ performance by using each segment’s operating income and considers budget-to-actual variances on a periodic basis (at least quarterly) when making decisions about operational planning, including resource allocation. Further, the CEO uses segments’ operating income when comparing the results of each segment with one another.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

The tables below provide information about the Company’s reportable segments, including the corporate and unallocated category.

​

Year Ended December 31, 2025

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Monster		​	​	​	​	​	​	​	​	​	​	​
​	​	Energy®		​	Strategic		​	Alcohol		​	​	​	​	​
​	​ ​ ​	Drinks		​ ​ ​	Brands		​ ​ ​	Brands		​ ​ ​	Other		​ ​ ​	Total
Net sales1	​	$	7,665,871	​	$	468,716	​	$	134,720	​	$	25,036	​	$	8,294,343
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cost of sales		​	3,394,604		​	146,913		​	102,303		​	18,328		​	—
Gross profit		​	4,271,267		​	321,803		​	32,417		​	6,708		​	4,632,195
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Distribution expense		​	314,933		​	6,257		​	9,897		​	—		​	—
Selling and marketing expense		​	714,958		​	61,633		​	26,447		​	421		​	—
Nonmanufacturing payroll expense		​	177,027		​	9,556		​	35,212		​	2,147		​	—
Intangibles impairment		​	—		​	—		​	38,411		​	—		​	—
Other segment items2		​	87,845		​	3,600		​	49,410		​	698		​	—
Segment profit (loss)1	​	​	2,976,504	​	​	240,757	​	​	(126,960)	​	​	3,442	​	​	3,093,743
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Reconciliation of segment profit (loss)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income, net		​	​		​	​		​	​		​	​		​	63,175
Unallocated amounts:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Corporate payroll expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​	(445,742)
Corporate overhead expenses, excluding payroll	​	​	​	​	​	​	​	​	​	​	​	​	​	​	(228,647)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income before provision for income taxes		​	​		​	​		​	​		​	​		$	2,482,529
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	$	78,504	​	$	1,104	​	$	19,467	​	$	1,218	​	$	100,293
Unallocated depreciation and amortization	​	​	​	​	​	​	​	​	​	​	​	​	​	​	14,148
Total depreciation and amortization	​	​	​	​	​	​	​	​	​	​	​	​	​	$	114,441

​

1_For the Monster Energy® Drinks segment, includes_ $40.0 million related to the recognition of deferred revenue.

2_Other segment items for each reportable segment include:_

Monster Energy® Drinks - travel and entertainment expense, professional services expense, and certain overhead expenses

Strategic Brands - travel and entertainment expense, and certain overhead expenses

Alcohol Brands - property and equipment impairment, depreciation and amortization expense, travel and entertainment expense, professional services expense, and certain overhead expenses

Other - professional services expense, and certain overhead expenses

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Year Ended December 31, 2024

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Monster		​	​	​	​	​	​	​	​	​	​	​
​	​	Energy®		​	Strategic		​	Alcohol		​	​	​	​	​
​	​ ​ ​	Drinks		​ ​ ​	Brands		​ ​ ​	Brands		​ ​ ​	Other		​ ​ ​	Total
Net sales1	​	$	6,864,597	​	$	432,233	​	$	172,313	​	$	23,566	​	$	7,492,709
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cost of sales		​	3,170,993		​	125,099		​	131,590		​	16,149		​	—
Gross profit		​	3,693,604		​	307,134		​	40,723		​	7,417		​	4,048,878
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Distribution expense		​	322,464		​	6,030		​	13,621		​	19		​	—
Selling and marketing expense		​	672,582		​	55,629		​	27,652		​	235		​	—
Nonmanufacturing payroll expense		​	164,091		​	8,790		​	36,884		​	2,174		​	—
Goodwill and intangibles impairment		​	—		​	—		​	127,098		​	—		​	—
Other segment items2		​	72,011		​	2,933		​	35,784		​	342		​	—
Segment profit (loss)1		​	2,462,456		​	233,752		​	(200,316)		​	4,647		​	2,500,539
​		​	​		​	​		​	​		​	​		​	​
Reconciliation of segment profit (loss)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income, net		​	​		​	​		​	​		​	​		​	59,165
Unallocated amounts:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Corporate payroll expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​	(377,382)
Corporate overhead expenses, excluding payroll	​	​	​	​	​	​	​	​	​	​	​	​	​	​	(192,863)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income before provision for income taxes	​	​	​	​	​	​	​	​	​	​	​	​	​	$	1,989,459
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	$	53,117	​	$	942	​	$	14,290	​	$	200	​	$	68,549
Unallocated depreciation and amortization	​	​	​	​	​	​	​	​	​	​	​	​	​	​	11,885
Total depreciation and amortization	​	​	​	​	​	​	​	​	​	​	​	​	​	$	80,434

​

1_For the Monster Energy® Drinks segment, includes_ $39.9 million related to the recognition of deferred revenue.

2_Other segment items for each reportable segment include:_

Monster Energy® Drinks - travel and entertainment expense, professional services expense, and certain overhead expenses

Strategic Brands - travel and entertainment expense, and certain overhead expenses

Alcohol Brands - depreciation and amortization expense, travel and entertainment expense, professional services expens__e, and certain overhead expenses

Other - travel and entertainment expense, and certain overhead expenses

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Year Ended December 31, 2023

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Monster		​	​	​	​	​	​	​	​	​	​	​
​	​	Energy®		​	Strategic		​	Alcohol		​	​	​	​	​
​	​ ​ ​	Drinks		​ ​ ​	Brands		​ ​ ​	Brands		​ ​ ​	Other		​ ​ ​	Total
Net sales1	​	$	6,555,089	​	$	376,589	​	$	184,855	​	$	23,494	​	$	7,140,027
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Cost of sales		​	3,094,906		​	104,980		​	129,607		​	16,328		​	—
Gross profit		​	3,460,183		​	271,609		​	55,248		​	7,166		​	3,794,206
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Distribution expense		​	306,516		​	6,184		​	10,931		​	47		​	—
Selling and marketing expense		​	601,550		​	48,937		​	24,814		​	266		​	—
Nonmanufacturing payroll expense		​	146,236		​	6,446		​	34,192		​	1,996		​	—
Intangibles impairment	​	​	—	​	​	300	​	​	38,400	​	​	—	​	​	—
Other segment items2		​	67,137		​	2,596		​	28,035		​	1,293		​	—
Segment profit (loss)1		​	2,338,744		​	207,146		​	(81,124)		​	3,564		​	2,468,330
​		​	​		​	​		​	​		​	​		​	​
Reconciliation of segment profit (loss)	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Interest and other income, net		​	​		​	​		​	​		​	​		​	115,127
Unallocated amounts:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Corporate payroll expenses	​	​	​	​	​	​	​	​	​	​	​	​	​	​	(331,743)
Corporate overhead expenses, excluding payroll	​	​	​	​	​	​	​	​	​	​	​	​	​	​	(183,232)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Income before provision for income taxes	​	​	​	​	​	​	​	​	​	​	​	​	​	$	2,068,482
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Depreciation and amortization	​	$	37,606	​	$	793	​	$	15,745	​	$	1,264	​	$	55,408
Unallocated depreciation and amortization	​	​	​	​	​	​	​	​	​	​	​	​	​	​	13,490
Total depreciation and amortization	​	​	​	​	​	​	​	​	​	​	​	​	​	$	68,898

​

1_For the Monster Energy® Drinks segment, includes_ $40.0 million related to the recognition of deferred revenue.

2_Other segment items for each reportable segment include:_

Monster Energy® Drinks - travel and entertainment expense, professional services expense, and certain overhead expenses

Strategic Brands - travel and entertainment expense, and certain overhead expenses

Alcohol Brands - depreciation and amortization expense, travel and entertainment expense, professional services expense, and certain overhead expenses

Other - depreciation and amortization expense, and certain overhead expenses

Coca-Cola Europacific Partners accounted for approximately 15%, 14% and 13% of the Company’s net sales for the years ended December 31, 2025, 2024 and 2023, respectively.

Coca-Cola Consolidated, Inc. accounted for approximately 10% of the Company’s net sales for each of the years ended December 31, 2025, 2024 and 2023.

Net sales to customers outside the United States amounted to $3.44 billion, $2.96 billion and $2.71 billion for the years ended December 31, 2025, 2024 and 2023, respectively. Such sales were approximately 41%, 40% and 38% of net sales for the years ended December 31, 2025, 2024 and 2023, respectively.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Goodwill and other intangible assets for the Company’s reportable segments as of December 31, 2025 and 2024 were as follows:

​

​	​	​	​	​	​	​
​	​ ​ ​	2025		​ ​ ​	2024
Goodwill and other intangible assets:	​	​	​	​	​	​
Monster Energy® Drinks	​	$	1,716,824	​	$	1,703,256
Strategic Brands	​		982,543	​		982,035
Alcohol Brands	​	​	11,544	​	​	60,604
Other	​		—	​		—
​	​	$	2,710,911	​	$	2,745,895

​

​

18.RELATED PARTY TRANSACTIONS

TCCC controls approximately 20.9% of the voting interests of the Company. The TCCC Subsidiaries, the TCCC Related Parties and certain TCCC independent bottlers, purchase and distribute the Company’s products in domestic and certain international markets. The Company also pays TCCC a commission based on certain sales within the TCCC distribution network.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2025 were $115.4 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2025 were $46.6 million, and are included in operating expenses in the consolidated statements of income.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2024 were $91.2 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2024 were $37.3 million, and are included in operating expenses in the consolidated statements of income.

TCCC commissions, based on sales to the TCCC Subsidiaries and the TCCC Related Parties, for the year ended December 31, 2023 were $66.8 million, and are included as a reduction to net sales. TCCC commissions, based on sales to the TCCC Independent Bottlers for the year ended December 31, 2023 were $32.0 million, and are included in operating expenses in the consolidated statements of income.

Net sales to the TCCC Subsidiaries for the years ended December 31, 2025, 2024 and 2023 were $251.0 million, $216.4 million and $137.9 million, respectively.

The Company also purchases concentrates from TCCC which are then sold to certain of the Company’s bottlers/distributors. Concentrate purchases from TCCC were $25.8 million, $28.0 million and $29.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Certain TCCC Subsidiaries also contract manufacture certain of the Company’s energy drinks. Such contract manufacturing expenses were $54.2 million, $41.9 million and $35.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Tabular Dollars in Thousands, Except Per Share Amounts)

​

Accounts receivable, accounts payable, accrued promotional allowances and accrued liabilities related to the TCCC Subsidiaries were as follows at:

​

​	​	​	​	​	​	​
​	​	December 31,		​	December 31,
​	​ ​ ​	2025		​ ​ ​	2024
Accounts receivable, net	​	$	166,618	​	$	112,686
Accounts payable	​	$	(37,775)	​	$	(29,095)
Accrued promotional allowances	​	$	(24,898)	​	$	(16,914)
Accrued liabilities	​	$	(28,458)	​	$	(22,595)

​

One director of the Company through certain trusts, and a family member of one director are principal owners of a company that provides promotional materials to the Company. Expenses incurred with such company in connection with promotional materials purchased during the years ended December 31, 2025, 2024 and 2023 were $5.8 million, $5.9 million and $4.0 million, respectively.

The Company occasionally charters a private aircraft that is indirectly owned by Mr. Rodney C. Sacks, Chairman of the Board of Directors. On certain occasions, Mr. Sacks is accompanied by guests and other Company personnel when using such aircraft for business travel. During the years ended December 31, 2025, 2024 and 2023, the Company incurred costs of $0.06 million, $0.05 million and $0.14 million, respectively.

In December 2018, the Company and a director of the Company entered into a 50-50 partnership that purchased land, and real property thereon, in Kona, Hawaii for the purpose of producing coffee products. In October 2023, the partnership made a special, one-time distribution to each of the partners, reflecting the amount of their initial capital contributions. This partnership meets the definition of a Variable Interest Entity (“VIE”) for which the Company has determined that it is the primary beneficiary. Therefore, the Company consolidates the VIE in the accompanying consolidated financial statements. The aggregate carrying values of the VIE’s assets and liabilities, after elimination of any intercompany transactions and balances, as well as the results of operations for all periods presented, are not material to the Company’s consolidated financial statements.

​

​

MONSTER BEVERAGE CORPORATION AND SUBSIDIARIES

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 AND 2023 (Dollars in Thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Balance at		​	Charged to		​	​	​	​	Balance at
​	​	beginning		​	cost and		​	​	​	​	end of
Description	​ ​ ​	of period		​ ​ ​	expenses		​ ​ ​	Deductions		​ ​ ​	period
Allowance for doubtful accounts, sales returns and cash discounts:	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
2025	​	$	7,124	​	$	19,303	​	$	(20,427)	​	$	6,000
2024	​	$	7,638	​	$	20,695	​	$	(21,209)	​	$	7,124
2023	​	$	10,460	​	$	20,991	​	$	(23,813)	​	$	7,638
​	​	​	​	​	​	​	​	​	​	​	​	​
Allowance on deferred tax assets and unrecognized tax benefits:	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​
2025	​	$	41,968	​	$	7,417	​	$	—	​	$	49,385
2024	​	$	33,692	​	$	8,276	​	$	—	​	$	41,968
2023	​	$	33,166	​	$	526	​	$	—	​	$	33,692

​

​

​

​